Reviewing SoftBank Group (OTCMKTS:SFTBY) and Telephone & Data Systems (OTCMKTS:TDS)
SoftBank Group (OTCMKTS:SFTBY) and Telephone & Data Systems (NYSE:TDS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Risk & Volatility
SoftBank Group has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Telephone & Data Systems has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
SoftBank Group pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. Telephone & Data Systems pays an annual dividend of $0.66 per share and has a dividend yield of 2.2%. 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. Telephone & Data Systems is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares SoftBank Group and Telephone & Data Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telephone & Data Systems||3.00%||2.92%||1.55%|
Valuation and Earnings
This table compares SoftBank Group and Telephone & Data Systems’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SoftBank Group||$82.70 billion||1.22||$9.78 billion||N/A||N/A|
|Telephone & Data Systems||$5.11 billion||0.66||$135.00 million||$1.17||25.26|
SoftBank Group has higher revenue and earnings than Telephone & Data Systems.
Institutional and Insider Ownership
1.2% of SoftBank Group shares are owned by institutional investors. Comparatively, 80.9% of Telephone & Data Systems shares are owned by institutional investors. 14.3% of Telephone & Data Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings for SoftBank Group and Telephone & Data Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telephone & Data Systems||1||0||3||0||2.50|
Telephone & Data Systems has a consensus price target of $37.75, suggesting a potential upside of 27.75%. Given Telephone & Data Systems’ higher possible upside, analysts clearly believe Telephone & Data Systems is more favorable than SoftBank Group.
SoftBank Group beats Telephone & Data Systems on 9 of the 16 factors compared between the two stocks.
SoftBank Group Company Profile
SoftBank Group Corp., together with its subsidiaries, operates in the information industry in Japan and internationally. The company operates through six segments: Domestic Telecommunications, Sprint, Yahoo Japan, Distribution, ARM, and SoftBank Vision Fund and Delta Fund. The Domestic Telecommunications segment provides mobile communications and broadband services; and telecom services, such as data communications and fixed-line telephone services to corporate customers, as well as sells mobile devices. The Sprint segment offers mobile communications and fixed-line telecommunications services; and leases and sells mobile devices and accessories. The Yahoo Japan segment is involved in Internet advertising, e-commerce, and membership service businesses. The Distribution segment distributes mobile devices; and sells PC software, peripherals, and mobile device accessories. The ARM segment designs microprocessor intellectual property and related technology; and sells software tools. The SoftBank Vision Fund and Delta Fund segment is involved in investment activities. Further, the company operates professional baseball team, as well as manages and maintains baseball stadium and other sports facilities; provides visual, audio, and data content distribution services; generates, supplies, and sells electricity from renewable energy sources; operates IT information site; offers solutions and services for online businesses; and operates software site, through which it conducts an online game business for mobile phones and PCs, as well as engages in robotics planning, development, and marketing activities. SoftBank Group Corp. was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. The company was founded in 1981 and is headquartered in Tokyo, Japan.
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.
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