Sprint (S) versus TIM Participacoes (TSU) Head-To-Head Comparison

Sprint (NYSE: S) and TIM Participacoes (NYSE:TSU) are both large-cap telecommunications services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Profitability

This table compares Sprint and TIM Participacoes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprint 21.41% -0.94% -0.24%
TIM Participacoes 7.56% 6.90% 3.76%

Dividends

TIM Participacoes pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Sprint does not pay a dividend. TIM Participacoes pays out 20.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sprint and TIM Participacoes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprint 6 11 1 0 1.72
TIM Participacoes 0 3 5 0 2.63

Sprint currently has a consensus price target of $5.77, indicating a potential upside of 9.47%. TIM Participacoes has a consensus price target of $20.00, indicating a potential downside of 4.85%. Given Sprint’s higher possible upside, equities research analysts clearly believe Sprint is more favorable than TIM Participacoes.

Institutional and Insider Ownership

13.8% of Sprint shares are held by institutional investors. Comparatively, 15.4% of TIM Participacoes shares are held by institutional investors. 0.2% of Sprint shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Sprint has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, TIM Participacoes has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sprint and TIM Participacoes’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sprint $33.35 billion 0.63 -$1.21 billion $1.73 3.05
TIM Participacoes $3.21 billion 3.17 $386.64 million $0.78 26.95

TIM Participacoes has lower revenue, but higher earnings than Sprint. Sprint is trading at a lower price-to-earnings ratio than TIM Participacoes, indicating that it is currently the more affordable of the two stocks.

Summary

TIM Participacoes beats Sprint on 10 of the 16 factors compared between the two stocks.

About Sprint

Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.

About TIM Participacoes

TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.

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

Leave a Reply