Head-To-Head Survey: Ruckus Wireless (RKUS) vs. United States Cellular (USM)

Ruckus Wireless (NYSE: RKUS) and United States Cellular (NYSE:USM) are both telecommunications services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ruckus Wireless and United States Cellular, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruckus Wireless 0 0 0 0 N/A
United States Cellular 1 1 0 0 1.50

United States Cellular has a consensus price target of $30.00, indicating a potential downside of 18.21%. Given United States Cellular’s higher possible upside, analysts clearly believe United States Cellular is more favorable than Ruckus Wireless.

Insider & Institutional Ownership

14.8% of United States Cellular shares are owned by institutional investors. 1.6% of United States Cellular shares are owned 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.

Valuation and Earnings

This table compares Ruckus Wireless and United States Cellular’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ruckus Wireless N/A N/A N/A $0.05 257.40
United States Cellular $3.94 billion 0.79 $48.00 million ($3.13) -11.72

United States Cellular has higher revenue and earnings than Ruckus Wireless. United States Cellular is trading at a lower price-to-earnings ratio than Ruckus Wireless, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ruckus Wireless and United States Cellular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruckus Wireless -0.92% -1.17% -0.88%
United States Cellular -6.93% 0.94% 0.49%

Summary

United States Cellular beats Ruckus Wireless on 6 of the 9 factors compared between the two stocks.

Ruckus Wireless Company Profile

Ruckus Wireless, Inc. is a supplier of advanced (Wi-Fi) solutions. The Company’s solutions, which it call Smart Wi-Fi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with wireless traffic demands. It operates through selling controllers and access points along with related software and services segment. The Company markets and sells its products and technology through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality, such as enhanced reliability, extended range and scalability. Its products include controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions, including reporting and analytics, and Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices.

United States Cellular Company Profile

United States Cellular Corporation (U.S. Cellular) is a provider of wireless telecommunication services. The Company’s wireless operating markets are in the United States. U.S. Cellular provides service to postpaid and prepaid customers from a range of demographic segments. The Company focuses on retail consumers, government and small-to-mid-size business customers in industries, such as construction, retail, professional services and real estate. The Company offers a range of wireless devices, such as handsets, modems, mobile hotspots, home phones and tablets for use by its customers. U.S. Cellular offers wireless devices that are compatible with fourth generation long term evolution (4G LTE) and third generation (3G) networks. U.S. Cellular offers a range of accessories, such as carrying cases, hands-free devices, batteries, battery chargers, and memory cards to related consumer electronics, such as headphones, speakers and Bluetooth keyboards.

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