TIM Participacoes (TSU) versus CalAmp (CAMP) Head to Head Review

TIM Participacoes (NYSE: TSU) and CalAmp (NASDAQ:CAMP) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Insider and Institutional Ownership

15.4% of TIM Participacoes shares are owned by institutional investors. Comparatively, 71.7% of CalAmp shares are owned by institutional investors. 5.3% of CalAmp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for TIM Participacoes and CalAmp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIM Participacoes 0 3 5 0 2.63
CalAmp 0 2 6 0 2.75

TIM Participacoes currently has a consensus target price of $20.00, suggesting a potential downside of 4.85%. CalAmp has a consensus target price of $25.86, suggesting a potential upside of 10.64%. Given CalAmp’s stronger consensus rating and higher probable upside, analysts plainly believe CalAmp is more favorable than TIM Participacoes.

Dividends

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

Risk & Volatility

TIM Participacoes has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, CalAmp has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Earnings and Valuation

This table compares TIM Participacoes and CalAmp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TIM Participacoes $3.21 billion 3.17 $386.64 million $0.78 26.95
CalAmp $351.10 million 2.37 -$7.90 million $0.49 47.69

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

Profitability

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

Net Margins Return on Equity Return on Assets
TIM Participacoes 7.56% 6.90% 3.76%
CalAmp 5.00% 19.20% 7.92%

Summary

CalAmp beats TIM Participacoes on 9 of the 16 factors compared between the two stocks.

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.

About CalAmp

CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.

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