Critical Analysis: Orbsat (OTCMKTS:OSAT) & Telephone and Data Systems (NYSE:TDS)

Orbsat (OTCMKTS:OSAT) and Telephone and Data Systems (NYSE:TDS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Earnings and Valuation

This table compares Orbsat and Telephone and Data Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbsat	$7.19 million	0.84	-$2.76 million	N/A	N/A
Telephone and Data Systems	$5.04 billion	0.70	-$500.00 million	($5.40)	-5.77

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orbsat	-83.01%	-81.44%	-65.84%
Telephone and Data Systems	-10.72%	1.12%	0.40%

Analyst Recommendations

This is a breakdown of recent recommendations for Orbsat and Telephone and Data Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbsat	0	0	0	0	0.00
Telephone and Data Systems	0	0	2	0	3.00

Telephone and Data Systems has a consensus target price of $45.50, suggesting a potential upside of 45.97%. Given Telephone and Data Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Telephone and Data Systems is more favorable than Orbsat.

Insider & Institutional Ownership

8.4% of Orbsat shares are held by institutional investors. Comparatively, 80.0% of Telephone and Data Systems shares are held by institutional investors. 29.9% of Orbsat shares are held by company insiders. Comparatively, 14.5% of Telephone and Data Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Orbsat has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500. Comparatively, Telephone and Data Systems has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Summary

Telephone and Data Systems beats Orbsat on 8 of the 12 factors compared between the two stocks.

About Orbsat

Orbsat Corp. engages in the provision of satellite based services and solutions for commercial, government and individual users. The firm’s services include satellite communication solutions, emergency location systems, high-speed satellite internet and global asset and personnel monitoring, customized ground station systems and custom product design. It also focuses on the distribution, development and reselling of satellite enabled communications hardware. The company was founded in 1997 and is headquartered in Aventura, FL.

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.