Analyzing Telephone and Data Systems (NYSE:TDS) & Tower One Wireless (OTCMKTS:TOWTF)

Telephone and Data Systems (NYSE:TDS) and Tower One Wireless (OTCMKTS:TOWTF) are both small-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Volatility and Risk

Telephone and Data Systems has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Tower One Wireless has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Profitability

This table compares Telephone and Data Systems and Tower One Wireless’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telephone and Data Systems	-9.69%	0.21%	0.08%
Tower One Wireless	N/A	N/A	N/A

Insider & Institutional Ownership

80.0% of Telephone and Data Systems shares are owned by institutional investors. 14.1% of Telephone and Data Systems shares are owned by company insiders. Comparatively, 32.0% of Tower One Wireless shares are owned 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Telephone and Data Systems and Tower One Wireless, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telephone and Data Systems	0	1	2	0	2.67
Tower One Wireless	0	0	0	0	N/A

Telephone and Data Systems currently has a consensus price target of $26.33, indicating a potential upside of 71.33%. Given Telephone and Data Systems’ higher possible upside, equities analysts plainly believe Telephone and Data Systems is more favorable than Tower One Wireless.

Earnings and Valuation

This table compares Telephone and Data Systems and Tower One Wireless’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telephone and Data Systems	$5.16 billion	0.34	-$500.00 million	($5.05)	-3.04
Tower One Wireless	$8.53 million	0.00	-$3.34 million	N/A	N/A

Tower One Wireless has lower revenue, but higher earnings than Telephone and Data Systems.

Summary

Telephone and Data Systems beats Tower One Wireless on 8 of the 11 factors compared between the two stocks.

About Telephone and Data Systems

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products. It also provides replace and repair services; Trade-In program through which it buys customers' used equipment; internet connections and all-home Wi-Fi services; TDS TV+, an integrated cloud television platform that offers video content and features; local and long-distance telephone service, voice over internet protocol, and enhanced services; broadband, IP-based services, and hosted voice and video collaboration services; and communication services in underserved areas. The company sells its products through retail stores, direct and indirect sales, third-party retailers, and independent agents, as well as through ecommerce and telesales. Telephone and Data Systems, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.

About Tower One Wireless

Tower One Wireless Corp. owns, develops, and operates build-to-suit multitenant communications towers in Argentina, Colombia, Mexico, the United States, and internationally. It primarily engages in the leasing of space on communications sites to mobile network operators. The company also provides tower-related services, including site acquisition, zoning and permitting, structural analysis, and construction. Tower One Wireless Corp. was incorporated in 2005 and is headquartered in Bogotá, Colombia.