Telephone and Data Systems (NYSE: TDS) is one of 36 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it compare to its rivals? We will compare Telephone and Data Systems to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Dividends

Telephone and Data Systems pays an annual dividend of $0.62 per share and has a dividend yield of 2.2%. Telephone and Data Systems pays out 129.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 3.1% and pay out 62.1% of their earnings in the form of a dividend. Telephone and Data Systems has raised its dividend for 42 consecutive years. Telephone and Data Systems lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Telephone and Data Systems has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Telephone and Data Systems’ rivals have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares Telephone and Data Systems and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Telephone and Data Systems $5.04 billion $934.00 million 57.75
Telephone and Data Systems Competitors $28.18 billion $8.25 billion -5.34

Telephone and Data Systems’ rivals 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 rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Telephone and Data Systems and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telephone and Data Systems 0 2 0 0 2.00
Telephone and Data Systems Competitors 574 1706 1795 70 2.33

Telephone and Data Systems presently has a consensus target price of $38.00, suggesting a potential upside of 37.09%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 19.22%. Given Telephone and Data Systems’ higher probable upside, research analysts plainly believe Telephone and Data Systems is more favorable than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Telephone and Data Systems 1.09% 1.15% 0.58%
Telephone and Data Systems Competitors -999.64% 3.14% -6.43%

Insider and Institutional Ownership

82.5% of Telephone and Data Systems shares are held by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 17.3% of Telephone and Data Systems shares are held by company insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are held by company 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.

Summary

Telephone and Data Systems rivals beat Telephone and Data Systems on 8 of the 15 factors compared.

About Telephone and Data Systems

Telephone and Data Systems, Inc. is a diversified telecommunications company. The Company is engaged in conducting its Wireless operations through its subsidiary, United States Cellular Corporation (U.S. Cellular), as well as providing its wireline services, cable services, and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom). It operates through four business segments: U.S. Cellular, Wireline, Cable, and Hosted and Managed Services. U.S. Cellular provides service to postpaid and prepaid customers. Wireline operations provide retail telecommunications services to both residential and commercial customers. Wireline offers services, including broadband, video, voice and network access services. Cable offers broadband, video and voice services under TDS and BendBroadband brand names. It provides a range of information technology (IT) services, including colocation, and cloud and hosting solutions through its HMS business.

Receive News & Ratings for Telephone and Data Systems Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Telephone and Data Systems Inc. and related companies with MarketBeat.com's FREE daily email newsletter.