Comparing T-Mobile US (NASDAQ:TMUS) & Proxim Wireless (OTCMKTS:PRXM)

T-Mobile US (NASDAQ:TMUS) and Proxim Wireless (OTCMKTS:PRXM) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Institutional & Insider Ownership

42.5% of T-Mobile US shares are owned by institutional investors. 0.4% of T-Mobile US shares are owned by insiders. Comparatively, 3.6% of Proxim Wireless shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

T-Mobile US has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Proxim Wireless has a beta of 19.97, meaning that its share price is 1,897% more volatile than the S&P 500.

Profitability

This table compares T-Mobile US and Proxim Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T-Mobile US	14.53%	19.68%	5.78%
Proxim Wireless	N/A	N/A	N/A

Earnings & Valuation

This table compares T-Mobile US and Proxim Wireless”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T-Mobile US	$81.40 billion	3.49	$11.34 billion	$10.60	23.84
Proxim Wireless	N/A	N/A	N/A	N/A	N/A

T-Mobile US has higher revenue and earnings than Proxim Wireless.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for T-Mobile US and Proxim Wireless, as provided by MarketBeat.

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

T-Mobile US currently has a consensus target price of $258.02, indicating a potential upside of 2.12%. Given T-Mobile US’s stronger consensus rating and higher possible upside, equities research analysts clearly believe T-Mobile US is more favorable than Proxim Wireless.

Summary

T-Mobile US beats Proxim Wireless on 9 of the 11 factors compared between the two stocks.

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.

About Proxim Wireless

Proxim Wireless Corporation provides Wi-Fi, point-to-point, and point-to-multipoint 4G wireless network technologies for wireless Internet, video surveillance, and backhaul applications. It offers wireless broadband and backhaul products, wireless LAN access products, and network controllers. The company's products have applications in transportation, video surveillance, mobility, Wi-Fi offload, backhaul, wireless broadband/ISP, government, carrier Wi-Fi, retail Wi-Fi, and enterprises WLAN. Its broadband wireless equipment is used by enterprises, service providers, carriers, government entities, educational institutions, healthcare organizations, municipalities and other organizations that need high-performance, secure, and scalable broadband wireless solutions. The company serves customers through online retailers, a network of distributors, value-added resellers, system integrators, and original equipment manufacturers in North America, Africa, the Asia Pacific, Europe, Latin America, and the Middle East. The company was founded in 1982 and is headquartered in San Jose, California. As of July 31, 2018, Proxim Wireless Corporation operates as a subsidiary of SRA Holdings, Inc.