América Móvil, S.A.B. de C.V. (NYSE: AMOV) and Telephone and Data Systems (NYSE:TDS) are both mid-cap wireless telecommunications services – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Risk & Volatility

América Móvil, S.A.B. de C.V. has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Telephone and Data Systems has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for América Móvil, S.A.B. de C.V. and Telephone and Data Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
América Móvil, S.A.B. de C.V. 0 1 1 0 2.50
Telephone and Data Systems 0 1 1 0 2.50

Earnings & Valuation

This table compares América Móvil, S.A.B. de C.V. and Telephone and Data Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
América Móvil, S.A.B. de C.V. N/A N/A N/A $0.55 30.67
Telephone and Data Systems $5.10 billion 0.54 $43.00 million ($1.27) -19.54

Telephone and Data Systems has higher revenue and earnings than América Móvil, S.A.B. de C.V.. Telephone and Data Systems is trading at a lower price-to-earnings ratio than América Móvil, S.A.B. de C.V., indicating that it is currently the more affordable of the two stocks.

Dividends

Telephone and Data Systems pays an annual dividend of $0.62 per share and has a dividend yield of 2.5%. América Móvil, S.A.B. de C.V. does not pay a dividend. Telephone and Data Systems pays out -48.8% of its earnings in the form of a dividend. América Móvil, S.A.B. de C.V. has increased its dividend for 42 consecutive years.

Insider and Institutional Ownership

82.3% of Telephone and Data Systems shares are held by institutional investors. 17.3% of Telephone and Data Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares América Móvil, S.A.B. de C.V. and Telephone and Data Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
América Móvil, S.A.B. de C.V. -3.37% -21.11% -2.41%
Telephone and Data Systems -2.77% 1.08% 0.55%

Summary

Telephone and Data Systems beats América Móvil, S.A.B. de C.V. on 9 of the 11 factors compared between the two stocks.

About América Móvil, S.A.B. de C.V.

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

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.

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