NII (NIHD) & U.S. Cellular (USM) Critical Survey

NII (NASDAQ: NIHD) and U.S. Cellular (NYSE:USM) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Earnings & Valuation

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This table compares NII and U.S. Cellular’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NII $869.80 million 0.26 -$301.01 million N/A N/A
U.S. Cellular $3.89 billion 0.80 $12.00 million $0.58 63.21

U.S. Cellular has higher revenue and earnings than NII.

Profitability

This table compares NII and U.S. Cellular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NII -31.46% -433.00% -17.27%
U.S. Cellular 0.80% 1.82% 0.97%

Institutional & Insider Ownership

61.1% of NII shares are owned by institutional investors. Comparatively, 15.0% of U.S. Cellular shares are owned by institutional investors. 0.3% of NII shares are owned by insiders. Comparatively, 1.6% of U.S. Cellular shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for NII and U.S. Cellular, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NII 0 0 0 0 N/A
U.S. Cellular 0 0 1 0 3.00

Risk and Volatility

NII has a beta of -0.53, indicating that its stock price is 153% less volatile than the S&P 500. Comparatively, U.S. Cellular has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Summary

U.S. Cellular beats NII on 9 of the 10 factors compared between the two stocks.

About NII

NII Holdings, Inc., through its subsidiaries, provides wireless communication services to the individual consumers under the Nextel brand in Brazil. The company offers its services through wideband code division multiple access and long-term evolution networks. Its services include mobile telephone voice and wireless data, international voice and data roaming, and application-based radio connection services. The company also provides value-added services, including sports, music, and entertainment streaming capabilities; online education; and access to national and international WiFi hotspot networks. As of December 31, 2017, it had approximately 3.246 million subscriber units. The company markets its services through direct sales representatives, indirect sales agents, retail stores and kiosks, and other subscriber-convenient sales channels. The company was formerly known as Nextel International, Inc. and changed its name to NII Holdings, Inc. in December 2001. NII Holdings, Inc. was founded in 1995 and is headquartered in Reston, Virginia.

About U.S. Cellular

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers postpaid and prepaid service plans with voice, messaging, and data usage option services; and smartphone messaging, data, and Internet services, which allow the customer to access the Web and social network sites, e-mail, text, picture, and video messaging, as well as to utilize GPS navigation, and browse and download various applications. It also provides roaming services; machine to machine solutions and software applications in the areas of monitor and control, business automation/operations, communication, and asset management; wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers; and accessories comprising wireless basics, such as cases, screen protectors, chargers, and memory cards. In addition, the company offers assortment of consumer electronics consisting of headphones, speakers, wearables, and home automation products. It serves approximately 5.1 million customers, including retail consumers, governments, and small-to-mid-size business customers in construction, retail, agriculture, professional services, and real estate industries. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as Website and telesales. As of December 31, 2017, it operated 256 retail stores and kiosks. The company was founded in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.