Reviewing T-Mobile Us (PCS) and Intelsat (I)

T-Mobile Us (NYSE: PCS) and Intelsat (NYSE:I) are both wireless telecommunications services – nec companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Institutional & Insider Ownership

37.9% of Intelsat shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for T-Mobile Us and Intelsat, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
T-Mobile Us 0 2 5 0 2.71
Intelsat 0 3 1 0 2.25

T-Mobile Us presently has a consensus price target of $70.86, indicating a potential upside of 498.46%. Intelsat has a consensus price target of $4.38, indicating a potential upside of 13.93%. Given T-Mobile Us’ stronger consensus rating and higher possible upside, research analysts clearly believe T-Mobile Us is more favorable than Intelsat.

Profitability

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

Net Margins Return on Equity Return on Assets
T-Mobile Us N/A N/A N/A
Intelsat 26.57% -1.90% -0.78%

Valuation and Earnings

This table compares T-Mobile Us and Intelsat’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
T-Mobile Us N/A N/A N/A $0.24 49.33
Intelsat $2.19 billion 0.21 $990.19 million $5.18 0.74

Intelsat has higher revenue and earnings than T-Mobile Us. Intelsat 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.

Summary

T-Mobile Us beats Intelsat on 5 of the 9 factors compared between the two stocks.

T-Mobile Us Company Profile

MetroPCS Communications, Inc. (MetroPCS Communications) is a facilities-based wireless broadband mobile communications provider in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota metropolitan areas. It offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas in the United States. It provides a variety of wireless broadband mobile communications services to its customers on a no long-term contract, paid-in-advance basis. As of December 31, 2011, it had over 9.3 million customers. All of its services are provided through wholly owned subsidiaries of MetroPCS Wireless, Inc., an indirect wholly owned subsidiary of MetroPCS Communications. In January 2011, it introduced long term evolution (4G LTE) service plans.

Intelsat Company Profile

Intelsat S.A. operates in satellite services business. The Company provides satellite services to its communications customers around the world. It provides communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations and Internet service providers (ISPs). The Company is also a provider of commercial satellite communication services to the United States Government and other select military organizations and their contractors. The Company focuses on business-to-business services, indirectly enable enterprise, government and consumer applications through its customers. The Company has operations in North America, Europe, Latin America and Caribbean, Africa and Middle East, and Asia Pacific.

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