TMUS vs. CSCO, INTU, QCOM, AMAT, TXN, VZ, ADBE, IBM, UBER, and NOW
Should you be buying T-Mobile US stock or one of its competitors? The main competitors of T-Mobile US include Cisco Systems (CSCO), Intuit (INTU), QUALCOMM (QCOM), Applied Materials (AMAT), Texas Instruments (TXN), Verizon Communications (VZ), Adobe (ADBE), International Business Machines (IBM), Uber Technologies (UBER), and ServiceNow (NOW). These companies are all part of the "computer and technology" sector.
Cisco Systems (NASDAQ:CSCO) and T-Mobile US (NASDAQ:TMUS) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, community ranking, media sentiment, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Cisco Systems currently has a consensus target price of $55.81, indicating a potential upside of 15.18%. T-Mobile US has a consensus target price of $186.33, indicating a potential upside of 13.87%. Given T-Mobile US's higher probable upside, equities analysts clearly believe Cisco Systems is more favorable than T-Mobile US.
In the previous week, T-Mobile US had 4 more articles in the media than Cisco Systems. MarketBeat recorded 32 mentions for T-Mobile US and 28 mentions for Cisco Systems. Cisco Systems' average media sentiment score of 0.71 beat T-Mobile US's score of 0.66 indicating that T-Mobile US is being referred to more favorably in the news media.
Cisco Systems received 1451 more outperform votes than T-Mobile US when rated by MarketBeat users. Likewise, 73.39% of users gave Cisco Systems an outperform vote while only 69.16% of users gave T-Mobile US an outperform vote.
Cisco Systems pays an annual dividend of $1.60 per share and has a dividend yield of 3.3%. T-Mobile US pays an annual dividend of $2.60 per share and has a dividend yield of 1.6%. Cisco Systems pays out 48.6% of its earnings in the form of a dividend. T-Mobile US pays out 35.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cisco Systems has raised its dividend for 13 consecutive years. Cisco Systems is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
73.3% of Cisco Systems shares are owned by institutional investors. Comparatively, 42.5% of T-Mobile US shares are owned by institutional investors. 0.0% of Cisco Systems shares are owned by insiders. Comparatively, 0.7% of T-Mobile US shares are owned by 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.
Cisco Systems has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.
Cisco Systems has a net margin of 23.49% compared to Cisco Systems' net margin of 11.15%. T-Mobile US's return on equity of 33.01% beat Cisco Systems' return on equity.
Cisco Systems has higher earnings, but lower revenue than T-Mobile US. Cisco Systems 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.
Summary
Cisco Systems beats T-Mobile US on 12 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TMUS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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