Iridium World Communications (OTCMKTS:IRIDQ) versus Tele2 (OTCMKTS:TLTZY) Financial Review

Tele2 (OTCMKTS:TLTZY) and Iridium World Communications (OTCMKTS:IRIDQ) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Valuation & Earnings

This table compares Tele2 and Iridium World Communications”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tele2	$3.06 billion	3.80	$468.79 million	$0.78	10.85
Iridium World Communications	N/A	N/A	N/A	N/A	N/A

Tele2 has higher revenue and earnings than Iridium World Communications.

Analyst Recommendations

This is a summary of current recommendations for Tele2 and Iridium World Communications, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tele2	0	3	2	1	2.67
Iridium World Communications	0	0	0	0	0.00

Given Iridium World Communications’ higher possible upside, analysts plainly believe Iridium World Communications is more favorable than Tele2.

Profitability

This table compares Tele2 and Iridium World Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tele2	33.96%	43.42%	15.54%
Iridium World Communications	N/A	N/A	N/A

Risk and Volatility

Tele2 has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Iridium World Communications has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Summary

Tele2 beats Iridium World Communications on 8 of the 9 factors compared between the two stocks.

About Tele2

Tele2 AB (publ) provides fixed and mobile connectivity, handset related data services, and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. The company also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, it offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. The company was incorporated in 1990 and is headquartered in Kista, Sweden.

About Iridium World Communications

In August 1999, Iridium World Communications Ltd. filed a voluntary petition under Chapter 11 of the United States Bankruptcy Court, and operated as a debtor-in-possession. Iridium World Communications, Ltd. was engaged in the ownership and participation in the management of Iridium LLC, its parent company, which owned Iridium Operating LLC (Iridium), as of March 31, 1999. Iridium operated as a global wireless telecommunications company. It enabled its customers to make and receive phone calls, and receive pages virtually anywhere in the world. The company was founded in 1991 and is based in Hamilton, Bermuda.