United States Cellular (NYSE:USM – Get Free Report) and Telecom Italia (OTCMKTS:TIAOF – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.
Valuation and Earnings
This table compares United States Cellular and Telecom Italia’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United States Cellular||$4.07 billion||0.84||$30.00 million||($0.28)||-143.00|
United States Cellular has higher revenue and earnings than Telecom Italia. United States Cellular is trading at a lower price-to-earnings ratio than Telecom Italia, indicating that it is currently the more affordable of the two stocks.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United States Cellular||0||3||1||0||2.25|
United States Cellular currently has a consensus target price of $45.25, suggesting a potential upside of 13.01%. Given United States Cellular’s higher probable upside, analysts clearly believe United States Cellular is more favorable than Telecom Italia.
This table compares United States Cellular and Telecom Italia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United States Cellular||-0.54%||-0.48%||-0.20%|
Insider & Institutional Ownership
16.8% of United States Cellular shares are owned by institutional investors. Comparatively, 35.6% of Telecom Italia shares are owned by institutional investors. 0.6% of United States Cellular shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Telecom Italia beats United States Cellular on 6 of the 10 factors compared between the two stocks.
About United States Cellular
United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers, as well as various essentials, including cases, screen protectors, chargers, and memory cards; and consumer electronics comprising audio, home automation, and networking products. In addition, it sells wireless devices to agents and other third-party distributors for resale; and offers option for customers to purchase devices and accessories under installment contracts. Further, the company offers wireless roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers. The company provides its products and services through retail sales, direct sales, telesales, ecommerce, indirect sales, and independent agents, as well as third-party national retailers. United States Cellular Corporation was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.
About Telecom Italia
Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for small and medium-size enterprises, small offices/home offices, the public sector, large accounts, and enterprises in the fixed and mobile telecommunications markets. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. In addition, it is involved in customer care, operating credit support, loyalty, and retention activities. The company has a strategic partnership with Google Cloud. Telecom Italia S.p.A. was incorporated in 1908 and is headquartered in Rome, Italy.
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