This ASX telco grew 3 times faster than the Telstra (ASX:TLS) share price

This relatively unknown telco just broke its all-time high…

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While the Telstra Corporation Limited (ASX: TLS) share price is having a year to remember, there’s another ASX-listed telco that’s growing at triple the rate.

At the time of writing, shares in Australia’s largest telecom company are trading for $3.76 – up 0.67% today and 7.9% in the last 52 weeks.

Macquarie Telecom Group Ltd (ASX: MAQ), however, just broke its all-time high to reach $56.50 a share today. That’s up almost 3% today and an impressive 25% over the last 12 months. That’s a growth rate more than 3 times better than Telstra’s.

Let’s take a closer look at the company.

Company profile

Macquarie Telecom Group is divided into four business segments – telecom, cloud, government, and data services.

Serving businesses and government agencies, the company provides a range of services in the tech sector it claims are “completely different from its competitors.” The company says 42% of all federal government agencies choose to work with Macquarie Telecom, for example.

Why this company is outperforming the Telstra share price

Motley Fool Australia has previously reported on how Macquarie Telecom has been tipped to increase by as much as 40%. To be clear, that’s on top of its already impressive gains over the past year.

Montgomery Investment Management said the company is a “structural winner” that was being underrated by most. It claims many are assuming its gains so far are because of COVID-19 lockdowns and increased demand for remote working.

The Telstra share price is also looked upong favourably by some brokers. Goldman Sachs put a 12-month target of $4.20 on the company – a 12% increase on today’s price.

The sale of 49% of its towers business saw investors rushing to Telstra. The company recently hit a 12-month high of $3.79 and has since fallen back to its current levels.

The contrast between the Telstra share price and Macquarie Telecom is even starker when looking over the longer term. Over a 5-year period, Telstra shares have shrunk by 35% while Macquarie Telecom shares have exploded by 352%.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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