Contrasting T-Mobile US (NASDAQ:TMUS) & Liberty Latin America (NASDAQ:LILA)

T-Mobile US (NASDAQ:TMUS) and Liberty Latin America (NASDAQ:LILA) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Risk and Volatility

T-Mobile US has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for T-Mobile US and Liberty Latin America, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T-Mobile US	0	12	18	3	2.73
Liberty Latin America	2	0	1	0	1.67

T-Mobile US presently has a consensus price target of $260.17, indicating a potential upside of 31.72%. Liberty Latin America has a consensus price target of $9.75, indicating a potential upside of 37.13%. Given Liberty Latin America’s higher possible upside, analysts clearly believe Liberty Latin America is more favorable than T-Mobile US.

Earnings and Valuation

This table compares T-Mobile US and Liberty Latin America”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	$85.85 billion	2.57	$11.34 billion	$10.40	18.99
Liberty Latin America	$4.43 billion	0.32	-$657.00 million	($3.69)	-1.93

T-Mobile US has higher revenue and earnings than Liberty Latin America. Liberty Latin America 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 Liberty Latin America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T-Mobile US	13.83%	19.76%	5.67%
Liberty Latin America	-16.57%	-54.11%	-5.95%

Insider and Institutional Ownership

42.5% of T-Mobile US shares are held by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are held by institutional investors. 0.4% of T-Mobile US shares are held by company insiders. Comparatively, 12.0% of Liberty Latin America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

T-Mobile US beats Liberty Latin America on 12 of the 15 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 Liberty Latin America

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.