TIM (NYSE:TIMB – Get Free Report) and KVH Industries (NASDAQ:KVHI – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Volatility & Risk
TIM has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, KVH Industries has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.
Institutional and Insider Ownership
73.7% of KVH Industries shares are held by institutional investors. 21.4% of KVH Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| TIM | 15.73% | 17.99% | 7.74% |
| KVH Industries | -4.31% | -0.80% | -0.70% |
Analyst Recommendations
This is a summary of recent recommendations for TIM and KVH Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TIM | 1 | 8 | 3 | 1 | 2.31 |
| KVH Industries | 1 | 0 | 0 | 0 | 1.00 |
TIM currently has a consensus target price of $25.23, suggesting a potential upside of 31.82%. Given TIM’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TIM is more favorable than KVH Industries.
Earnings and Valuation
This table compares TIM and KVH Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TIM | $4.77 billion | 1.94 | $772.28 million | $1.69 | 11.33 |
| KVH Industries | $111.01 million | 1.63 | -$7.38 million | ($0.26) | -35.62 |
TIM has higher revenue and earnings than KVH Industries. KVH Industries is trading at a lower price-to-earnings ratio than TIM, indicating that it is currently the more affordable of the two stocks.
Summary
TIM beats KVH Industries on 12 of the 15 factors compared between the two stocks.
About TIM
TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.
About KVH Industries
KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network management software for maritime communications; CommBox Edge, an advanced maritime network optimization and management solution; Starlink, a companion terminal for TracNet and TracPhone systems; KVH ONE, a global hybrid communication network supporting Internet, VoIP, content delivery, and other; and TracVision, a satellite television antenna system for vessels, recreational vehicles, buses, conversion vans, and automobiles. In addition, the company offers KVH Elite, a streaming service for leisure yachts; KVH OneCare, a services and support for TracNet and TracPhone systems; MOVIElink, a movie distribution solution; MUSIClink, a music and karaoke delivery solution; NEWSlink, a maritime news delivery solution; SPORTSlink, a sporting content delivery solution; TVlink, a television programming delivery solution; and news from home, a digital newspaper service. It sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles. The company was founded in 1982 and is headquartered in Middletown, Rhode Island.
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