Financial Contrast: Array Digital Infrastructure (AD) and Its Peers

Array Digital Infrastructure (NYSE:AD) is one of 202 public companies in the “Diversified Telecommunication Services” industry, but how does it contrast to its peers? We will compare Array Digital Infrastructure to similar companies based on the strength of its institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

18.0% of Array Digital Infrastructure shares are owned by institutional investors. Comparatively, 32.7% of shares of all “Diversified Telecommunication Services” companies are owned by institutional investors. 0.1% of Array Digital Infrastructure shares are owned by company insiders. Comparatively, 19.3% of shares of all “Diversified Telecommunication Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Array Digital Infrastructure and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Array Digital Infrastructure	0	3	3	0	2.50
Array Digital Infrastructure Competitors	1679	5129	7359	367	2.44

Array Digital Infrastructure currently has a consensus price target of $47.40, suggesting a potential upside of 30.08%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 21.53%. Given Array Digital Infrastructure’s stronger consensus rating and higher possible upside, research analysts clearly believe Array Digital Infrastructure is more favorable than its peers.

Profitability

This table compares Array Digital Infrastructure and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Array Digital Infrastructure	250.79%	8.52%	4.15%
Array Digital Infrastructure Competitors	-12.22%	-229.18%	-3.14%

Earnings and Valuation

This table compares Array Digital Infrastructure and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Array Digital Infrastructure	$162.96 million	$48.76 million	5.88
Array Digital Infrastructure Competitors	$1,837.49 billion	$976.35 million	-191.41

Array Digital Infrastructure’s peers have higher revenue and earnings than Array Digital Infrastructure. Array Digital Infrastructure is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Array Digital Infrastructure has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Array Digital Infrastructure’s peers have a beta of -4.78, suggesting that their average stock price is 578% less volatile than the S&P 500.

Summary

Array Digital Infrastructure beats its peers on 7 of the 13 factors compared.

Array Digital Infrastructure Company Profile

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.