Head-To-Head Analysis: Telephone and Data Systems (NYSE:TDS) versus SITO Mobile (OTCMKTS:SITOQ)

SITO Mobile (OTCMKTS:SITOQ) and Telephone and Data Systems (NYSE:TDS) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

80.0% of Telephone and Data Systems shares are owned by institutional investors. 2.2% of SITO Mobile shares are owned by company insiders. Comparatively, 14.2% of Telephone and Data Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SITO Mobile	N/A	N/A	N/A	N/A	N/A
Telephone and Data Systems	$1.25 billion	3.01	-$6.24 million	$3.00	10.98

SITO Mobile has higher earnings, but lower revenue than Telephone and Data Systems.

Risk & Volatility

SITO Mobile has a beta of -0.65, suggesting that its stock price is 165% less volatile than the S&P 500. Comparatively, Telephone and Data Systems has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SITO Mobile and Telephone and Data Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SITO Mobile	0	0	0	0	0.00
Telephone and Data Systems	0	3	2	0	2.40

Telephone and Data Systems has a consensus price target of $53.33, suggesting a potential upside of 61.84%. Given Telephone and Data Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Telephone and Data Systems is more favorable than SITO Mobile.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SITO Mobile	N/A	N/A	N/A
Telephone and Data Systems	33.20%	12.06%	6.04%

Summary

Telephone and Data Systems beats SITO Mobile on 10 of the 10 factors compared between the two stocks.

About SITO Mobile

SITO Mobile, Ltd. provides advertisement delivery, measurement and attribution, and consumer insights using its proprietary location-based marketing intelligence platform in the United States and Canada. It offers Ad Placement, which delivers advertisements on behalf of its customers to audiences of existing and prospective consumers in a privacy compliant manner; and advertisements across television, desktop, social media, and digital out of home platforms. The company also provides measurement and attribution products, including Real-time Verified Walk-In, a platform built in-house working in tandem with a data management platform and demand side platform; Location, Audience and Behavior Sciences reports that provide an analysis of a customer's audience, breaking down location, and purchase and demographic data against various control groups for selected targeted audiences in real time; and Purchase Science Reports, which offer transaction data to make marketing campaigns relevant and measurable. In addition, it offers Insights products, such as Consumer Behavior and Location Sciences, which explores the consumers and presents information and actionable insights for executives and strategic decision makers looking to understand and influence consumer behaviors. The company provides its services to brands, advertising agencies, out-of-home advertisers, media companies, and non-media companies through salesforce and account management teams. The company was formerly known as Single Touch Systems, Inc. and changed its name to SITO Mobile, Ltd. in September 2014. SITO Mobile, Ltd. was incorporated in 2000 and is based in Jersey City, New Jersey.

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.