Critical Comparison: Partner Communications (PTNR) and United States Cellular (USM)

Partner Communications (NASDAQ:PTNR) and United States Cellular (NYSE:USM) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Partner Communications and United States Cellular’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Partner Communications $943.00 million 0.88 $33.00 million N/A N/A
United States Cellular $3.89 billion 1.05 $12.00 million $0.58 82.26

Partner Communications has higher earnings, but lower revenue than United States Cellular.

Institutional & Insider Ownership

2.3% of Partner Communications shares are held by institutional investors. Comparatively, 15.5% of United States Cellular shares are held by institutional investors. 0.6% of Partner Communications shares are held by insiders. Comparatively, 1.9% of United States Cellular shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Partner Communications and United States Cellular, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Partner Communications 0 0 0 0 N/A
United States Cellular 1 0 2 0 2.33

United States Cellular has a consensus price target of $47.00, indicating a potential downside of 1.49%. Given United States Cellular’s higher probable upside, analysts clearly believe United States Cellular is more favorable than Partner Communications.

Risk & Volatility

Partner Communications has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, United States Cellular has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Partner Communications and United States Cellular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Partner Communications 0.54% 1.22% 0.39%
United States Cellular 1.74% 2.78% 1.50%

Summary

United States Cellular beats Partner Communications on 9 of the 12 factors compared between the two stocks.

About Partner Communications

Partner Communications Company Ltd. provides various telecommunication services in Israel. It operates in two segments, Cellular and Fixed-Line. The company offers cellular telephony services, including basic cellular telephony, text messaging, Internet browsing and data transfer, content, and roaming services, as well as services provided to other operators that are permitted to use its cellular network. It also provides cellular content and value-added services, such as multimedia messaging, cyber protection, cloud backup, ringtone, music streaming, and various business services; and international roaming services, as well as sells and leases cellular handsets, and related cellular devices and accessories. In addition, the company offers Internet service provider (ISP) services comprising email accounts, Wi-Fi networking, anti-virus and anti-spam filtering, and infrastructure and ISP access services; network and data infrastructure services, information security and integration solutions, business information storage services, and data center and cloud services; international long distance services; fixed-line transmission and data capacity services; and voice over broadband telephony and primary rate interface services. Further, it provides television, high speed broadband fiber optic based network, and value added services; and sell and leases modems, domestic routers, servers, smartboxes, and related equipment, as well as tablets, laptops, landline phones, datacards, televisions, digital cameras, games consoles, audio accessories and related equipment, and integration projects. Additionally, the company offers office communication private branch exchange services to business customers. It offers its services and products through sales and service centers, and direct sales force, as well as through dealers and online. The company was founded in 1997 and is headquartered in Rosh HaAyin, Israel.

About United States Cellular

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers postpaid and prepaid service plans with voice, messaging, and data usage option services; and smartphone messaging, data, and Internet services, which allow the customer to access the Web and social network sites, e-mail, text, picture, and video messaging, as well as to utilize GPS navigation, and browse and download various applications. It also provides roaming services; machine to machine solutions and software applications in the areas of monitor and control, business automation/operations, communication, and asset management; wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers; and accessories comprising wireless basics, such as cases, screen protectors, chargers, and memory cards. In addition, the company offers assortment of consumer electronics consisting of headphones, speakers, wearables, and home automation products. It serves approximately 5.1 million customers, including retail consumers, governments, and small-to-mid-size business customers in construction, retail, agriculture, professional services, and real estate industries. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as Website and telesales. As of December 31, 2017, it operated 256 retail stores and kiosks. The company was founded in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.

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