KVH Industries (NASDAQ:KVHI – Get Free Report) and T-Mobile US (NASDAQ:TMUS – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for KVH Industries and T-Mobile US, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KVH Industries | 1 | 0 | 0 | 0 | 1.00 |
| T-Mobile US | 0 | 8 | 21 | 1 | 2.77 |
T-Mobile US has a consensus target price of $252.08, suggesting a potential upside of 38.80%. Given T-Mobile US’s stronger consensus rating and higher possible upside, analysts plainly believe T-Mobile US is more favorable than KVH Industries.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KVH Industries | $125.01 million | 1.09 | -$7.38 million | ($0.30) | -25.10 |
| T-Mobile US | $88.31 billion | 2.21 | $10.99 billion | $9.55 | 19.02 |
T-Mobile US has higher revenue and earnings than KVH Industries. KVH Industries is trading at a lower price-to-earnings ratio than T-Mobile US, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares KVH Industries and T-Mobile US’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KVH Industries | -4.68% | -0.76% | -0.65% |
| T-Mobile US | 11.45% | 20.16% | 5.41% |
Risk and Volatility
KVH Industries has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.
Insider and Institutional Ownership
73.7% of KVH Industries shares are held by institutional investors. Comparatively, 42.5% of T-Mobile US shares are held by institutional investors. 21.4% of KVH Industries shares are held by company insiders. Comparatively, 0.3% of T-Mobile US shares are held 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.
Summary
T-Mobile US beats KVH Industries on 12 of the 15 factors compared between the two stocks.
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.
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.
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