Head to Head Review: B Communications (OTCMKTS:BCOMF) versus Telephone and Data Systems (NYSE:TDS)

Telephone and Data Systems (NYSE:TDS) and B Communications (OTCMKTS:BCOMF) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a summary of current recommendations for Telephone and Data Systems and B Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telephone and Data Systems	0	2	2	1	2.80
B Communications	0	0	0	0	0.00

Telephone and Data Systems currently has a consensus target price of $47.50, suggesting a potential upside of 40.95%. Given Telephone and Data Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Telephone and Data Systems is more favorable than B Communications.

Profitability

This table compares Telephone and Data Systems and B Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telephone and Data Systems	33.20%	11.97%	6.04%
B Communications	24.55%	25.62%	6.95%

Earnings & Valuation

This table compares Telephone and Data Systems and B Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telephone and Data Systems	$1.23 billion	3.16	-$6.24 million	$3.00	11.23
B Communications	$2.53 billion	0.18	$530.74 million	$5.35	0.80

B Communications has higher revenue and earnings than Telephone and Data Systems. B Communications is trading at a lower price-to-earnings ratio than Telephone and Data Systems, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

80.0% of Telephone and Data Systems shares are held by institutional investors. 14.2% of Telephone and Data Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Telephone and Data Systems has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, B Communications has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Summary

Telephone and Data Systems beats B Communications on 9 of the 15 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 B Communications

B Communications Ltd., through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel. It operates through Interior Landline Communication, Cellular Communication, Bezeq International Services, and Multi-Channel TV segments. The company offers landline interior communications, including telephony, internet services and infrastructure, transmission and data communication, and wholesale services; and cellular radio-telephone services. It is also involved in the installation, operation, and maintenance of equipment and systems in the field of cellular communications; distribution of television and radio broadcasts; and marketing of equipment. In addition, the company provides international communication, network endpoint, and ICT solutions; and digital multi-channel TV broadcasting services to subscriptions over satellite and over the internet, as well as value-added services to subscribers. The company was formerly known as 012 Smile. Communications Ltd. and changed its name to B Communications Ltd. in March 2010. B Communications Ltd was incorporated in 1999 and is based in Tel Aviv-Yafo, Israel.