Telephone & Data Systems (NYSE:TDS) and Inventergy Global (OTCMKTS:INVT) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Telephone & Data Systems pays an annual dividend of $0.66 per share and has a dividend yield of 2.7%. Inventergy Global 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 raised its dividend for 44 consecutive years.
Risk & Volatility
Telephone & Data Systems has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Inventergy Global has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
This table compares Telephone & Data Systems and Inventergy Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telephone & Data Systems||2.99%||2.89%||1.50%|
Valuation & Earnings
This table compares Telephone & Data Systems and Inventergy Global’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||$5.11 billion||0.55||$135.00 million||$1.17||21.11|
|Inventergy Global||$1.77 million||0.30||-$7.73 million||N/A||N/A|
Telephone & Data Systems has higher revenue and earnings than Inventergy Global.
Institutional & Insider Ownership
81.2% of Telephone & Data Systems shares are owned by institutional investors. 14.3% of Telephone & Data Systems shares are owned by company insiders. Comparatively, 24.6% of Inventergy Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Telephone & Data Systems and Inventergy Global, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telephone & Data Systems||0||1||3||0||2.75|
Telephone & Data Systems currently has a consensus target price of $39.13, indicating a potential upside of 58.40%. Given Telephone & Data Systems’ higher possible upside, equities research analysts plainly believe Telephone & Data Systems is more favorable than Inventergy Global.
Telephone & Data Systems beats Inventergy Global on 11 of the 14 factors compared between the two stocks.
Telephone & Data Systems Company Profile
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.
Inventergy Global Company Profile
Inventergy Global, Inc., an intellectual property (IP) investment and licensing company, engages in identifying, acquiring, and licensing patented technologies of various technology and small companies. The company acquires portfolios in the telecommunications industry primarily in core network infrastructure and mobile broadband communications segments. Inventergy Global, Inc. is headquartered in Campbell, California.
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