Head to Head Survey: Telephone & Data Systems (TDS) versus GTT Communications (GTT)
Telephone & Data Systems (NYSE: GTT) and GTT Communications (NYSE:GTT) are both mid-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Telephone & Data Systems pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. GTT Communications does not pay a dividend. Telephone & Data Systems pays out 120.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telephone & Data Systems has raised its dividend for 43 consecutive years.
This is a summary of recent ratings and price targets for Telephone & Data Systems and GTT Communications, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telephone & Data Systems||1||0||3||0||2.50|
Telephone & Data Systems presently has a consensus target price of $36.50, suggesting a potential upside of 19.63%. GTT Communications has a consensus target price of $51.63, suggesting a potential upside of 24.40%. Given GTT Communications’ stronger consensus rating and higher possible upside, analysts clearly believe GTT Communications is more favorable than Telephone & Data Systems.
Institutional and Insider Ownership
81.7% of Telephone & Data Systems shares are owned by institutional investors. Comparatively, 76.1% of GTT Communications shares are owned by institutional investors. 17.3% of Telephone & Data Systems shares are owned by insiders. Comparatively, 23.0% of GTT Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Telephone & Data Systems has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, GTT Communications has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Valuation and Earnings
This table compares Telephone & Data Systems and GTT Communications’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Telephone & Data Systems||$5.04 billion||0.68||$153.00 million||$0.53||57.57|
|GTT Communications||$827.90 million||2.74||-$71.50 million||$0.24||172.92|
Telephone & Data Systems has higher revenue and earnings than GTT Communications. Telephone & Data Systems is trading at a lower price-to-earnings ratio than GTT Communications, indicating that it is currently the more affordable of the two stocks.
This table compares Telephone & Data Systems and GTT Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telephone & Data Systems||3.53%||1.98%||1.05%|
Telephone & Data Systems beats GTT Communications on 9 of the 17 factors compared between the two stocks.
Telephone & Data Systems Company Profile
Telephone and Data Systems, Inc., a telecommunications company, provides wireless, wireline, cable, and hosted and managed services in the United States. The company offers cellular services, such as postpaid national plans and prepaid service plans with voice, messaging, and data usage options; and business rate plans. It also offers wireless devices comprising handsets, tablets, mobile hotspots, home phones, and routers; and including accessories, including wireless basics, such as cases, screen protectors, chargers, and memory cards, as well as an assortment of consumer electronics comprising headphones, speakers, wearables, and home automation products. In addition, the company provides wireline and cable broadband services; digital television (TV) and digital satellite TV video services; voice services comprising local and long-distance telephone, voice over Internet protocol, find me follow me, collaboration, instant messaging, and other services; and network access services. Further, it offers a range of information technology (IT) services, including colocation, cloud and hosting solutions, managed services, and enterprise resource planning application management services; sells IT hardware, as well as provides related maintenance and professional services; and engages in planning, engineering, procurement, sale, installation, and management of IT-infrastructure solutions. Additionally, the company operates retail stores and kiosks. The company serves approximately 5.1 million wireless customers and 1.2 million wireline and cable customers. Telephone and Data Systems, Inc. sells its products through retail sales, direct sales, third-party retailers, and independent agents, as well as through Website and telesales. The company was founded in 1968 and is headquartered in Chicago, Illinois.
GTT Communications Company Profile
GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers worldwide. The company provides private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless access services; managed equipment and security services; and voice and unified communications services consisting of SIP trunking and enterprise PBX services. It also offers video transport services for the transmission of live events, sport, entertainment, and news to broadcasters and cable programming providers; and network access services. The company's IP network consists of approximately 600 points of presence. GTT Communications, Inc. markets its products and services through a network of direct sales force and indirect sales channels. The company was formerly known as Global Telecom & Technology, Inc. and changed its name to GTT Communications, Inc. in January 2014. GTT Communications, Inc. was founded in 2005 and is headquartered in McLean, Virginia.
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