Head-To-Head Review: Cellcom Israel (OTCMKTS:CELJF) versus uCloudlink Group (NASDAQ:UCL)

Cellcom Israel (OTCMKTS:CELJF) and uCloudlink Group (NASDAQ:UCL) are both small-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

This is a summary of recent recommendations for Cellcom Israel and uCloudlink Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cellcom Israel	0	0	0	0	0.00
uCloudlink Group	1	0	0	0	1.00

Valuation & Earnings

This table compares Cellcom Israel and uCloudlink Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cellcom Israel	$1.20 billion	1.40	$46.74 million	$0.42	24.45
uCloudlink Group	$79.56 million	0.35	$6.30 million	$0.09	8.11

Cellcom Israel has higher revenue and earnings than uCloudlink Group. uCloudlink Group is trading at a lower price-to-earnings ratio than Cellcom Israel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cellcom Israel and uCloudlink Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cellcom Israel	N/A	N/A	N/A
uCloudlink Group	4.30%	12.59%	5.15%

Volatility and Risk

Cellcom Israel has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, uCloudlink Group has a beta of 4.2, meaning that its stock price is 320% more volatile than the S&P 500.

Institutional and Insider Ownership

85.5% of uCloudlink Group shares are held by institutional investors. 54.6% of uCloudlink Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

uCloudlink Group beats Cellcom Israel on 7 of the 12 factors compared between the two stocks.

About Cellcom Israel

Cellcom Israel Ltd. provides cellular communications services in Israel. It operates in two segments, Cellular and Fixed-line. The Cellular segment offers cellular communications, and cellular equipment and related services. The Fixed-line segment provides infrastructure and internet access, internet-based television, international telephony, landline telephony services, and transmission services for business customers and for telecommunication operators; and conferencing, cloud computing, and server hosting services, as well as IOT solutions. This segment also sells equipment, such as computers and communication equipment, including servers, routers, and switches, and others; and software and integration of information security products. The company was incorporated in 1994 and is headquartered in Netanya, Israel.

About uCloudlink Group

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.