Reviewing Intelsat (I) & T-Mobile Us (PCS)

Intelsat (NYSE: I) and T-Mobile Us (NYSE:PCS) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Intelsat and T-Mobile Us, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intelsat 0 3 1 0 2.25
T-Mobile Us 0 2 5 0 2.71

Intelsat presently has a consensus target price of $4.38, suggesting a potential upside of 5.93%. T-Mobile Us has a consensus target price of $70.86, suggesting a potential upside of 498.46%. Given T-Mobile Us’ stronger consensus rating and higher probable upside, analysts clearly believe T-Mobile Us is more favorable than Intelsat.

Earnings and Valuation

This table compares Intelsat and T-Mobile Us’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Intelsat $2.19 billion 0.22 $990.19 million $4.81 0.86
T-Mobile Us N/A N/A N/A $0.24 49.33

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

Profitability

This table compares Intelsat and T-Mobile Us’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intelsat 26.57% -1.90% -0.78%
T-Mobile Us N/A N/A N/A

Institutional and Insider Ownership

38.3% of Intelsat shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

T-Mobile Us beats Intelsat on 5 of the 9 factors compared between the two stocks.

About Intelsat

Intelsat S.A. operates in satellite services business. The Company provides satellite services to its communications customers around the world. It provides communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations and Internet service providers (ISPs). The Company is also a provider of commercial satellite communication services to the United States Government and other select military organizations and their contractors. The Company focuses on business-to-business services, indirectly enable enterprise, government and consumer applications through its customers. The Company has operations in North America, Europe, Latin America and Caribbean, Africa and Middle East, and Asia Pacific.

About T-Mobile Us

MetroPCS Communications, Inc. (MetroPCS Communications) is a facilities-based wireless broadband mobile communications provider in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota metropolitan areas. It offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas in the United States. It provides a variety of wireless broadband mobile communications services to its customers on a no long-term contract, paid-in-advance basis. As of December 31, 2011, it had over 9.3 million customers. All of its services are provided through wholly owned subsidiaries of MetroPCS Wireless, Inc., an indirect wholly owned subsidiary of MetroPCS Communications. In January 2011, it introduced long term evolution (4G LTE) service plans.

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