Analyzing Maxcom Telecomunic (OTCMKTS:MXMTY) and Telephone & Data Systems (OTCMKTS:TDS)

Maxcom Telecomunic (OTCMKTS:MXMTY) and Telephone & Data Systems (NYSE:TDS) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Risk and Volatility

Maxcom Telecomunic has a beta of -1.93, meaning that its share price is 293% less volatile than the S&P 500. Comparatively, Telephone & Data Systems has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Maxcom Telecomunic and Telephone & Data Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxcom Telecomunic 0 0 0 0 N/A
Telephone & Data Systems 0 1 3 0 2.75

Telephone & Data Systems has a consensus target price of $39.13, suggesting a potential upside of 53.37%. Given Telephone & Data Systems’ higher probable upside, analysts clearly believe Telephone & Data Systems is more favorable than Maxcom Telecomunic.

Profitability

This table compares Maxcom Telecomunic and Telephone & Data Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxcom Telecomunic -24.46% -38.45% -9.85%
Telephone & Data Systems 2.99% 2.89% 1.50%

Earnings and Valuation

This table compares Maxcom Telecomunic and Telephone & Data Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Maxcom Telecomunic $68.52 million 0.24 -$14.60 million N/A N/A
Telephone & Data Systems $5.11 billion 0.57 $135.00 million $1.17 21.80

Telephone & Data Systems has higher revenue and earnings than Maxcom Telecomunic.

Dividends

Telephone & Data Systems pays an annual dividend of $0.66 per share and has a dividend yield of 2.6%. Maxcom Telecomunic does not pay a dividend. Telephone & Data Systems pays out 56.4% of its earnings in the form of a dividend. Telephone & Data Systems has increased its dividend for 44 consecutive years.

Institutional and Insider Ownership

79.9% of Telephone & Data Systems shares are owned by institutional investors. 14.3% of Telephone & Data Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Telephone & Data Systems beats Maxcom Telecomunic on 13 of the 14 factors compared between the two stocks.

About Maxcom Telecomunic

Maxcom Telecomunicaciones S.A.B. de C.V. provides telecommunication services in Mexico. Its solutions include dedicated Internet; L2L, a service through a point-to-point circuit to create private networks by interconnecting two client addressing within the same local area; MPLS B-TIC service that allows the integration of IP traffic, including voice, data, or video in the same connection; 01800, a long distance service; and SIP TRUNKS, a voice over IP solution. The company serves various sectors in hospitality and health, finance, call center, education, government, retail, manufacture, and building, as well as other companies. Maxcom Telecomunicaciones S.A.B. de C.V. was founded in 1996 and is based in Mexico City, Mexico.

About Telephone & Data Systems

Telephone and Data Systems, Inc., a telecommunications company, provides wireless, cable and wireline broadband, TV, voice, and hosted and managed services in the United States. It operates through three segments: U.S. Cellular, Wireline, and Cable. The company offers cellular services to postpaid and prepaid customers, including retail consumers, government entities, and small-to-mid-size business customers in industries, such as the construction, retail, agriculture, professional services, and real estate; and national plans with voice, messaging, and data usage options. It also provides wireless devices comprising handsets, tablets, mobile hotspots, home phones, and routers; accessories that include wireless essentials, which comprise cases, screen protectors, chargers, and memory cards, as well as various consumer electronics, such as headphones, smart speakers, wearables, and home automation products. In addition, the company offers telecommunications services to residential and commercial customers, as well as wholesale customers and wireless carriers; broadband and digital television (TV) video services; voice services comprising local and long-distance telephone, voice over Internet protocol (VoIP), find me follow me, collaboration, instant messaging, and other services; and network access services. Further, it provides business services, including data networking, Ethernet, broadband access, and VoIP services to small- and medium-sized businesses, as well as operates retail stores and kiosks. The company offers its services to approximately 6 million connections. It 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.

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