T-Mobile US (NASDAQ:TMUS) versus Nuvera Communications (OTCMKTS:NUVR) Head to Head Survey

T-Mobile US (NASDAQ:TMUS) and Nuvera Communications (OTCMKTS:NUVR) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Insider and Institutional Ownership

42.5% of T-Mobile US shares are owned by institutional investors. Comparatively, 13.4% of Nuvera Communications shares are owned by institutional investors. 0.4% of T-Mobile US shares are owned by insiders. Comparatively, 13.8% of Nuvera Communications shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares T-Mobile US and Nuvera Communications”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T-Mobile US	$81.40 billion	3.36	$11.34 billion	$10.60	22.92
Nuvera Communications	$69.24 million	0.96	-$4.43 million	($0.77)	-16.49

T-Mobile US has higher revenue and earnings than Nuvera Communications. Nuvera Communications 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 T-Mobile US and Nuvera Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T-Mobile US	14.53%	19.68%	5.78%
Nuvera Communications	-5.83%	0.89%	0.31%

Analyst Recommendations

This is a summary of current ratings and recommmendations for T-Mobile US and Nuvera Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T-Mobile US	1	12	9	3	2.56
Nuvera Communications	0	0	0	0	0.00

T-Mobile US presently has a consensus target price of $258.02, indicating a potential upside of 6.23%. Given T-Mobile US’s stronger consensus rating and higher probable upside, equities analysts clearly believe T-Mobile US is more favorable than Nuvera Communications.

Risk & Volatility

T-Mobile US has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Nuvera Communications has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Dividends

T-Mobile US pays an annual dividend of $3.52 per share and has a dividend yield of 1.4%. Nuvera Communications pays an annual dividend of $0.42 per share and has a dividend yield of 3.3%. T-Mobile US pays out 33.2% of its earnings in the form of a dividend. Nuvera Communications pays out -54.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nuvera Communications is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

T-Mobile US beats Nuvera Communications on 14 of the 17 factors compared between the two stocks.

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.

About Nuvera Communications

Nuvera Communications, Inc. operates as a diversified communications company in the United States. The company offers broadband Internet access and voice over Internet protocol (VoIP) phone services; voice services to make and receive telephone calls within a defined local calling area; and network access services to other communication carriers for the use of its facilities to terminate or originate long distance calls on its fiber network. It also provides video services, including commercial TV programming, cable television services, and video-on-demand services; data services for business and residential customers; email and managed services comprising web hosting and design, online file back up, and online file storage; directory assistance, operator service, and long-distance private lines; directory publishing, bill processing, and other customer services; and fiber-delivered communications and managed information technology solutions, as well as sells and services customer premise equipment. In addition, the company is involved in the retail sale and service of cellular phones and accessories; and the operation of various IPTV and CATV systems. The company serves communities in Minnesota and Iowa through customer service call centers, its website, and commissioned sales representatives. The company was formerly known as New Ulm Telecom, Inc. and changed its name to Nuvera Communications, Inc. in June 2018. Nuvera Communications, Inc. was incorporated in 1905 and is headquartered in New Ulm, Minnesota.