Telephone and Data Systems (NYSE: TDS) and Turkcell Iletisim Hizmetleri AS (NYSE:TKC) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitabiliy, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Telephone and Data Systems and Turkcell Iletisim Hizmetleri AS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telephone and Data Systems 0 3 0 0 2.00
Turkcell Iletisim Hizmetleri AS 0 2 3 0 2.60

Telephone and Data Systems currently has a consensus target price of $38.00, suggesting a potential upside of 32.50%. Given Telephone and Data Systems’ higher possible upside, equities research analysts clearly believe Telephone and Data Systems is more favorable than Turkcell Iletisim Hizmetleri AS.

Profitability

This table compares Telephone and Data Systems and Turkcell Iletisim Hizmetleri AS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telephone and Data Systems 1.43% 1.41% 0.71%
Turkcell Iletisim Hizmetleri AS 11.07% 16.09% 8.28%

Risk and Volatility

Telephone and Data Systems has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Turkcell Iletisim Hizmetleri AS has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Dividends

Telephone and Data Systems pays an annual dividend of $0.62 per share and has a dividend yield of 2.2%. Turkcell Iletisim Hizmetleri AS does not pay a dividend. Telephone and Data Systems pays out 96.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telephone and Data Systems has increased its dividend for 42 consecutive years.

Insider & Institutional Ownership

81.2% of Telephone and Data Systems shares are held by institutional investors. Comparatively, 5.6% of Turkcell Iletisim Hizmetleri AS shares are held by institutional investors. 17.3% of Telephone and Data Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Telephone and Data Systems and Turkcell Iletisim Hizmetleri AS’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Telephone and Data Systems $5.09 billion 0.62 $953.00 million $0.64 44.81
Turkcell Iletisim Hizmetleri AS N/A N/A N/A $0.48 17.73

Telephone and Data Systems has higher revenue and earnings than Turkcell Iletisim Hizmetleri AS. Turkcell Iletisim Hizmetleri AS is trading at a lower price-to-earnings ratio than Telephone and Data Systems, indicating that it is currently the more affordable of the two stocks.

Summary

Telephone and Data Systems beats Turkcell Iletisim Hizmetleri AS on 9 of the 15 factors compared between the two stocks.

Telephone and Data Systems Company Profile

Telephone and Data Systems, Inc. is a diversified telecommunications company. The Company is engaged in conducting its Wireless operations through its subsidiary, United States Cellular Corporation (U.S. Cellular), as well as providing its wireline services, cable services, and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom). It operates through four business segments: U.S. Cellular, Wireline, Cable, and Hosted and Managed Services. U.S. Cellular provides service to postpaid and prepaid customers. Wireline operations provide retail telecommunications services to both residential and commercial customers. Wireline offers services, including broadband, video, voice and network access services. Cable offers broadband, video and voice services under TDS and BendBroadband brand names. It provides a range of information technology (IT) services, including colocation, and cloud and hosting solutions through its HMS business.

Turkcell Iletisim Hizmetleri AS Company Profile

Turkcell Iletisim Hizmetleri AS is engaged in establishing and operating a Global System for Mobile Communications (GSM) network in Turkey and regional states. The Company’s segments include Turkcell Turkey, which includes the operations of Turkcell Superonline, Turkcell Satis ve Dagitim Hizmetleri A.S., group call center operations of Global Bilgi Pazarlama Danisma ve Cagri Servisi Hizmetleri A.S., Turktell Bilisim Servisleri A.S., Kule Hizmet ve Isletmecilik A.S., Turkcell Odeme Hizmetleri A.S. and Turkcell Gayrimenkul Hizmetleri A.S; Turkcell International, which includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi, Eastasian Consortium BV, lifecell LLC, UkrTower LLC, LLC Global Bilgi, Turkcell Europe GmbH, Lifetech LLC, Beltower LLC and Fintur Holdings BV, and Other, which comprises the information and entertainment services in Turkey and Azerbaijan, and non-group call center operations of Turkcell Global Bilgi and Turkcell Finansman AS.

Receive News & Ratings for Telephone and Data Systems Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Telephone and Data Systems Inc. and related companies with MarketBeat.com's FREE daily email newsletter.