Comparing T-Mobile US (NASDAQ:TMUS) and Anterix (NASDAQ:ATEX)

T-Mobile US (NASDAQ:TMUS) and Anterix (NASDAQ:ATEX) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Profitability

This table compares T-Mobile US and Anterix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T-Mobile US	11.45%	20.16%	5.41%
Anterix	933.03%	-10.65%	-6.06%

Valuation & Earnings

This table compares T-Mobile US and Anterix”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	$92.19 billion	2.11	$10.99 billion	$9.55	19.01
Anterix	$7.04 million	240.27	$90.64 million	$3.50	24.65

T-Mobile US has higher revenue and earnings than Anterix. T-Mobile US is trading at a lower price-to-earnings ratio than Anterix, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for T-Mobile US and Anterix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T-Mobile US	0	8	21	1	2.77
Anterix	0	3	1	1	2.60

T-Mobile US presently has a consensus price target of $252.08, suggesting a potential upside of 38.87%. Anterix has a consensus price target of $120.00, suggesting a potential upside of 39.10%. Given Anterix’s higher possible upside, analysts clearly believe Anterix is more favorable than T-Mobile US.

Insider and Institutional Ownership

42.5% of T-Mobile US shares are owned by institutional investors. Comparatively, 87.7% of Anterix shares are owned by institutional investors. 0.3% of T-Mobile US shares are owned by company insiders. Comparatively, 40.0% of Anterix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

T-Mobile US has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Anterix has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

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 Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.