Critical Contrast: T-Mobile US (NASDAQ:TMUS) and Orange (OTCMKTS:ORANY)

Orange (OTCMKTS:ORANY) and T-Mobile US (NASDAQ:TMUS) are both large-cap communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Dividends

Orange pays an annual dividend of $0.68 per share and has a dividend yield of 3.6%. T-Mobile US pays an annual dividend of $4.08 per share and has a dividend yield of 2.2%. T-Mobile US pays out 42.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for Orange and T-Mobile US, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange	0	3	3	1	2.71
T-Mobile US	0	8	21	1	2.77

T-Mobile US has a consensus target price of $252.08, indicating a potential upside of 37.94%. Given T-Mobile US’s stronger consensus rating and higher probable upside, analysts plainly believe T-Mobile US is more favorable than Orange.

Volatility and Risk

Orange has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Insider and Institutional Ownership

12.2% of Orange shares are owned by institutional investors. Comparatively, 42.5% of T-Mobile US shares are owned by institutional investors. 0.3% of T-Mobile US shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Orange and T-Mobile US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orange	N/A	N/A	N/A
T-Mobile US	11.45%	20.16%	5.41%

Earnings & Valuation

This table compares Orange and T-Mobile US”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange	$45.69 billion	1.09	$608.69 million	N/A	N/A
T-Mobile US	$88.31 billion	2.22	$10.99 billion	$9.55	19.14

T-Mobile US has higher revenue and earnings than Orange.

Summary

T-Mobile US beats Orange on 12 of the 14 factors compared between the two stocks.

About Orange

Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; Spain and Other European Countries; The Africa and Middle East; Enterprise; International Carriers & Shared Services; and Mobile Financial Services segments. The company offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as fixed network business solutions, including voice and data; and convergence packages. It also sells mobile handsets, mobile terminals, broadband equipment, connected devices, and accessories. In addition, the company provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, it offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors and brokers. Orange S.A. markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was founded in 1990 and is headquartered in Issy-les-Moulineaux, France.

About T-Mobile US

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. The company was founded in 1994 and is headquartered in Bellevue, Washington.