uCloudlink Group (NASDAQ:UCL – Get Free Report) and TIM (NYSE:TIMB – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Insider & Institutional Ownership
85.5% of uCloudlink Group shares are owned by institutional investors. 54.6% of uCloudlink Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
uCloudlink Group has a beta of 4.08, suggesting that its stock price is 308% more volatile than the S&P 500. Comparatively, TIM has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| uCloudlink Group | $81.45 million | 0.12 | $6.30 million | ($0.01) | -26.67 |
| TIM | $4.77 billion | 1.80 | $772.28 million | $1.69 | 10.63 |
TIM has higher revenue and earnings than uCloudlink Group. uCloudlink Group is trading at a lower price-to-earnings ratio than TIM, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares uCloudlink Group and TIM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| uCloudlink Group | -0.31% | -0.88% | -0.37% |
| TIM | 15.73% | 17.99% | 7.74% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for uCloudlink Group and TIM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| uCloudlink Group | 2 | 0 | 0 | 0 | 1.00 |
| TIM | 1 | 9 | 2 | 1 | 2.23 |
TIM has a consensus target price of $24.82, suggesting a potential upside of 38.14%. Given TIM’s stronger consensus rating and higher possible upside, analysts clearly believe TIM is more favorable than uCloudlink Group.
Summary
TIM beats uCloudlink Group on 12 of the 15 factors compared between the two stocks.
About uCloudlink Group
uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.
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.
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