Head-To-Head Analysis: Telephone and Data Systems (TDS) and Its Competitors

Telephone and Data Systems (NYSE:TDS) is one of 203 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it weigh in compared to its competitors? We will compare Telephone and Data Systems to similar businesses based on the strength of its risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares Telephone and Data Systems and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Telephone and Data Systems	$1.23 billion	-$6.24 million	12.04
Telephone and Data Systems Competitors	$103.85 billion	$893.66 million	-168.32

Telephone and Data Systems’ competitors have higher revenue and earnings than Telephone and Data Systems. Telephone and Data Systems is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

80.0% of Telephone and Data Systems shares are held by institutional investors. Comparatively, 32.5% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 14.2% of Telephone and Data Systems shares are held by company insiders. Comparatively, 18.9% of shares of all “Diversified Telecommunication Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Telephone and Data Systems has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Telephone and Data Systems’ competitors have a beta of -4.90, indicating that their average share price is 590% less volatile than the S&P 500.

Dividends

Telephone and Data Systems pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Telephone and Data Systems pays out 5.3% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.9% and pay out 33.1% of their earnings in the form of a dividend.

Profitability

This table compares Telephone and Data Systems and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telephone and Data Systems	33.20%	11.97%	6.04%
Telephone and Data Systems Competitors	-11.93%	-217.42%	-3.37%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Telephone and Data Systems and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telephone and Data Systems	0	3	2	0	2.40
Telephone and Data Systems Competitors	1751	5339	7754	384	2.44

Telephone and Data Systems currently has a consensus price target of $47.50, indicating a potential upside of 31.53%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 21.42%. Given Telephone and Data Systems’ higher possible upside, equities analysts clearly believe Telephone and Data Systems is more favorable than its competitors.

Summary

Telephone and Data Systems beats its competitors on 8 of the 15 factors compared.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products. It also provides replace and repair services; Trade-In program through which it buys customers' used equipment; internet connections and all-home Wi-Fi services; TDS TV+, an integrated cloud television platform that offers video content and features; local and long-distance telephone service, voice over internet protocol, and enhanced services; broadband, IP-based services, and hosted voice and video collaboration services; and communication services in underserved areas. The company sells its products through retail stores, direct and indirect sales, third-party retailers, and independent agents, as well as through ecommerce and telesales. Telephone and Data Systems, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.