Nuvera Communications (OTCMKTS:NUVR) vs. T-Mobile US (NASDAQ:TMUS) Critical Analysis

Nuvera Communications (OTCMKTS:NUVR) and T-Mobile US (NASDAQ:TMUS) 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

Nuvera Communications has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares Nuvera Communications and T-Mobile US”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuvera Communications	$69.24 million	0.96	-$4.43 million	($0.77)	-16.56
T-Mobile US	$81.40 billion	3.48	$11.34 billion	$10.60	23.77

T-Mobile US has higher revenue and earnings than Nuvera Communications. Nuvera Communications is trading at a lower price-to-earnings ratio than T-Mobile US, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nuvera Communications and T-Mobile US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuvera Communications	-5.83%	0.89%	0.31%
T-Mobile US	14.53%	19.68%	5.78%

Institutional and Insider Ownership

13.4% of Nuvera Communications shares are held by institutional investors. Comparatively, 42.5% of T-Mobile US shares are held by institutional investors. 13.8% of Nuvera Communications shares are held by insiders. Comparatively, 0.4% of T-Mobile US 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nuvera Communications and T-Mobile US, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuvera Communications	0	0	0	0	0.00
T-Mobile US	1	12	9	3	2.56

T-Mobile US has a consensus price target of $256.31, indicating a potential upside of 1.71%. Given T-Mobile US’s stronger consensus rating and higher probable upside, analysts clearly believe T-Mobile US is more favorable than Nuvera Communications.

Summary

T-Mobile US beats Nuvera Communications on 14 of the 15 factors compared between the two stocks.

About Nuvera Communications

Nuvera Communications, Inc. operates as a diversified communications company in the United States. The company offers broadband Internet access and voice over Internet protocol (VoIP) phone services; voice services to make and receive telephone calls within a defined local calling area; and network access services to other communication carriers for the use of its facilities to terminate or originate long distance calls on its fiber network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; data services for business and residential customers; email and managed services comprising web hosting and design, online file back up, and online file storage; directory assistance, operator service, and long-distance private lines; directory publishing, bill processing, and other customer services; and fiber-delivered communications and managed information technology solutions, as well as sells and services customer premise equipment. In addition, the company is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systems. The company serves communities in Minnesota and Iowa through customer service call centers, its website, and commissioned sales representatives. The company was formerly known as New Ulm Telecom, Inc. and changed its name to Nuvera Communications, Inc. in June 2018. Nuvera Communications, Inc. was incorporated in 1905 and is headquartered in New Ulm, Minnesota.

About T-Mobile US

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. The company was founded in 1994 and is headquartered in Bellevue, Washington.