Reviewing T-Mobile US (NASDAQ:TMUS) and Liberty Latin America (NASDAQ:LILA)

Liberty Latin America (NASDAQ:LILAGet Free Report) and T-Mobile US (NASDAQ:TMUSGet Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Institutional and Insider Ownership

18.5% of Liberty Latin America shares are held by institutional investors. Comparatively, 42.5% of T-Mobile US shares are held by institutional investors. 12.0% of Liberty Latin America shares are held by company insiders. Comparatively, 0.4% of T-Mobile US shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Latin America 2 0 1 0 1.67
T-Mobile US 0 12 18 3 2.73

Liberty Latin America presently has a consensus target price of $9.75, suggesting a potential upside of 37.13%. T-Mobile US has a consensus target price of $260.17, suggesting a potential upside of 31.72%. Given Liberty Latin America’s higher possible upside, equities analysts clearly believe Liberty Latin America is more favorable than T-Mobile US.

Earnings and Valuation

This table compares Liberty Latin America and T-Mobile US”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Latin America $4.43 billion 0.32 -$657.00 million ($3.69) -1.93
T-Mobile US $85.85 billion 2.57 $11.34 billion $10.40 18.99

T-Mobile US has higher revenue and earnings than Liberty Latin America. Liberty Latin America 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.

Volatility & Risk

Liberty Latin America has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Liberty Latin America -16.57% -54.11% -5.95%
T-Mobile US 13.83% 19.76% 5.67%

Summary

T-Mobile US beats Liberty Latin America on 12 of the 15 factors compared between the two stocks.

About Liberty Latin America

(Get Free Report)

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.

About T-Mobile US

(Get Free Report)

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.

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