United States Cellular (NYSE:USM – Get Free Report) and Liberty Latin America (NASDAQ:LILA – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Volatility and Risk
United States Cellular has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for United States Cellular and Liberty Latin America, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United States Cellular | 0 | 0 | 3 | 0 | 3.00 |
| Liberty Latin America | 1 | 1 | 0 | 1 | 2.33 |
Institutional and Insider Ownership
18.0% of United States Cellular shares are held by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are held by institutional investors. 1.0% of United States Cellular shares are held by insiders. Comparatively, 11.4% of Liberty Latin America shares are held by 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.
Profitability
This table compares United States Cellular and Liberty Latin America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United States Cellular | -0.68% | 1.68% | 0.74% |
| Liberty Latin America | -26.61% | -77.72% | -9.37% |
Earnings & Valuation
This table compares United States Cellular and Liberty Latin America”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United States Cellular | $3.71 billion | 1.78 | -$39.00 million | ($0.30) | -259.60 |
| Liberty Latin America | $4.46 billion | 0.35 | -$657.00 million | ($5.93) | -1.32 |
United States Cellular has higher earnings, but lower revenue than Liberty Latin America. United States Cellular is trading at a lower price-to-earnings ratio than Liberty Latin America, indicating that it is currently the more affordable of the two stocks.
Summary
United States Cellular beats Liberty Latin America on 9 of the 15 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 wireless 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, resellers, 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 Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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