Critical Comparison: Intelsat (I) & United States Cellular (USM)
Intelsat (NYSE: I) and United States Cellular (NYSE:USM) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Insider and Institutional Ownership
37.2% of Intelsat shares are held by institutional investors. Comparatively, 14.5% of United States Cellular shares are held by institutional investors. 1.6% of United States Cellular shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings for Intelsat and United States Cellular, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United States Cellular||0||0||0||0||N/A|
Intelsat presently has a consensus target price of $4.83, suggesting a potential upside of 1.54%. Given Intelsat’s higher probable upside, equities research analysts plainly believe Intelsat is more favorable than United States Cellular.
This table compares Intelsat and United States Cellular’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United States Cellular||0.31%||1.22%||0.63%|
Earnings & Valuation
This table compares Intelsat and United States Cellular’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Intelsat||$2.15 billion||0.26||$990.19 million||($1.50)||-3.17|
|United States Cellular||$3.89 billion||0.87||$12.00 million||$0.12||332.08|
Intelsat has higher earnings, but lower revenue than United States Cellular. Intelsat is trading at a lower price-to-earnings ratio than United States Cellular, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Intelsat has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, United States Cellular has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
United States Cellular beats Intelsat on 8 of the 12 factors compared between the two stocks.
Intelsat S.A. operates in satellite services business. The Company provides satellite services to its communications customers around the world. It provides communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations and Internet service providers (ISPs). The Company is also a provider of commercial satellite communication services to the United States Government and other select military organizations and their contractors. The Company focuses on business-to-business services, indirectly enable enterprise, government and consumer applications through its customers. The Company has operations in North America, Europe, Latin America and Caribbean, Africa and Middle East, and Asia Pacific.
About United States Cellular
United States Cellular Corporation (U.S. Cellular) is a provider of wireless telecommunication services. The Company’s wireless operating markets are in the United States. U.S. Cellular provides service to postpaid and prepaid customers from a range of demographic segments. The Company focuses on retail consumers, government and small-to-mid-size business customers in industries, such as construction, retail, professional services and real estate. The Company offers a range of wireless devices, such as handsets, modems, mobile hotspots, home phones and tablets for use by its customers. U.S. Cellular offers wireless devices that are compatible with fourth generation long term evolution (4G LTE) and third generation (3G) networks. U.S. Cellular offers a range of accessories, such as carrying cases, hands-free devices, batteries, battery chargers, and memory cards to related consumer electronics, such as headphones, speakers and Bluetooth keyboards.
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