Financial Review: T-Mobile US (NASDAQ:TMUS) & Anterix (NASDAQ:ATEX)

Anterix (NASDAQ:ATEX) and T-Mobile US (NASDAQ:TMUS) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

87.7% of Anterix shares are owned by institutional investors. Comparatively, 42.5% of T-Mobile US shares are owned by institutional investors. 40.0% of Anterix shares are owned by insiders. Comparatively, 0.3% of T-Mobile US shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Anterix has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Anterix	933.03%	-10.65%	-6.06%
T-Mobile US	11.45%	20.16%	5.41%

Valuation and Earnings

This table compares Anterix 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
Anterix	$6.50 million	253.21	$90.64 million	$3.50	23.98
T-Mobile US	$88.31 billion	2.15	$10.99 billion	$9.55	18.57

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Anterix and T-Mobile US, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anterix	0	3	1	1	2.60
T-Mobile US	0	8	21	1	2.77

Anterix currently has a consensus price target of $120.00, suggesting a potential upside of 42.98%. T-Mobile US has a consensus price target of $252.08, suggesting a potential upside of 42.15%. Given Anterix’s higher probable upside, equities analysts clearly believe Anterix is more favorable than T-Mobile US.

About Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.

About T-Mobile US

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 customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, 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. The company was founded in 1994 and is headquartered in Bellevue, Washington.