Telephone & Data Systems (NYSE: TDS) and CalAmp (NASDAQ:CAMP) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
This table compares Telephone & Data Systems and CalAmp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telephone & Data Systems||3.03%||1.30%||0.67%|
This table compares Telephone & Data Systems and CalAmp’s gross 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||0.62||$153.00 million||$1.32||21.24|
|CalAmp||$351.10 million||2.37||-$7.90 million||$0.47||49.79|
Telephone & Data Systems has higher revenue and earnings than CalAmp. Telephone & Data Systems is trading at a lower price-to-earnings ratio than CalAmp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
80.5% of Telephone & Data Systems shares are held by institutional investors. Comparatively, 71.3% of CalAmp shares are held by institutional investors. 16.4% of Telephone & Data Systems shares are held by company insiders. Comparatively, 5.3% of CalAmp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Telephone & Data Systems and CalAmp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telephone & Data Systems||0||0||1||0||3.00|
CalAmp has a consensus target price of $26.25, indicating a potential upside of 12.18%. Given CalAmp’s higher probable upside, analysts clearly believe CalAmp is more favorable than Telephone & Data Systems.
Risk and Volatility
Telephone & Data Systems has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, CalAmp has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.
Telephone & Data Systems pays an annual dividend of $0.62 per share and has a dividend yield of 2.2%. CalAmp does not pay a dividend. Telephone & Data Systems pays out 47.0% of its earnings in the form of a dividend. CalAmp has raised its dividend for 43 consecutive years.
CalAmp beats Telephone & Data Systems on 10 of the 17 factors compared between the two stocks.
Telephone & Data Systems Company Profile
Telephone and Data Systems, Inc. is a diversified telecommunications company. The Company is engaged in conducting its Wireless operations through its subsidiary, United States Cellular Corporation (U.S. Cellular), as well as providing its wireline services, cable services, and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom). It operates through four business segments: U.S. Cellular, Wireline, Cable, and Hosted and Managed Services. U.S. Cellular provides service to postpaid and prepaid customers. Wireline operations provide retail telecommunications services to both residential and commercial customers. Wireline offers services, including broadband, video, voice and network access services. Cable offers broadband, video and voice services under TDS and BendBroadband brand names. It provides a range of information technology (IT) services, including colocation, and cloud and hosting solutions through its HMS business.
CalAmp Company Profile
CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.
Receive News & Ratings for Telephone & Data Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Telephone & Data Systems and related companies with MarketBeat.com's FREE daily email newsletter.