Financial Review: Telia (TLSNY) and T-Mobile US (TMUS)

Telia (OTCMKTS: TLSNY) and T-Mobile US (NASDAQ:TMUS) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Dividends

How to Become a New Pot Stock Millionaire

Telia pays an annual dividend of $0.33 per share and has a dividend yield of 3.5%. T-Mobile US does not pay a dividend. Telia pays out 37.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Telia and T-Mobile US, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telia 1 1 0 0 1.50
T-Mobile US 1 4 19 3 2.89

T-Mobile US has a consensus price target of $70.93, suggesting a potential upside of 16.21%. Given T-Mobile US’s stronger consensus rating and higher probable upside, analysts clearly believe T-Mobile US is more favorable than Telia.

Volatility and Risk

Telia has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Telia shares are owned by institutional investors. Comparatively, 35.7% of T-Mobile US shares are owned by institutional investors. 0.3% of T-Mobile US shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Telia 20.02% 11.19% 4.38%
T-Mobile US 11.19% 9.60% 2.86%

Valuation & Earnings

This table compares Telia and T-Mobile US’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telia $9.85 billion 2.07 $436.27 million $0.88 10.68
T-Mobile US $40.60 billion 1.28 $4.54 billion $2.29 26.66

T-Mobile US has higher revenue and earnings than Telia. Telia is trading at a lower price-to-earnings ratio than T-Mobile US, indicating that it is currently the more affordable of the two stocks.

Summary

T-Mobile US beats Telia on 11 of the 17 factors compared between the two stocks.

Telia Company Profile

Telia Company AB (publ) provides network access and telecommunication services. It operates through Sweden and Europe segments. The company offers mobile, broadband, and fixed voice TV services. It connects businesses, individuals, families, and communities via fixed and mobile communication solutions. Telia Company AB (publ) markets its products and services under the Azercell, Telia, Call me, DLG Tele, Diil, Sonera, TeleFinland, Geocell, Kcell, Activ, Telia Latvija, Cloudy, LMT Okarte, Amigo, Ezys, Moldcell, Chess, OneCall, MyCall, Halebop, Tcell, and Ucell brands. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is headquartered in Solna, Sweden.

T-Mobile US Company Profile

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 72.6 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices, as well as accessories that are manufactured by various suppliers. In addition, the company offers services, devices, and accessories under the T-Mobile and MetroPCS brands through its owned and operated retail stores, third party distributors, 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. As of December 31, 2017, T-Mobile US, Inc. operated approximately 2,200 T-Mobile and MetroPCS retail locations, including stores and kiosks. The company was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. is a subsidiary of Deutsche Telekom AG.

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

Leave a Reply