Array Digital Infrastructure Inc. (AD) vs Telephone and Data Systems, Inc. (TDS)

Array Digital Infrastructure Inc. and Telephone and Data Systems, Inc. are both Telecom Services companies. Telephone and Data Systems, Inc. is the larger, with a market value of $3.9B against $3.0B — 1.3× the size. Array Digital Infrastructure Inc. trades at the lower P/E: 5.6× against 11.7×. Telephone and Data Systems, Inc. grew revenue faster over the last twelve months: 304.9% against 112.4%. Array Digital Infrastructure Inc. has the higher net margin (250.8% vs 27.7%) and the higher return on invested capital (20.8% vs 7.49%). Across the 21 metrics below, Telephone and Data Systems, Inc. leads on 12 and Array Digital Infrastructure Inc. on 9.

Valuation

Metric AD TDS Telecom Services median
P/E 5.57 11.72 13.27
P/S 13.97 3.26 0.95
P/B 2.35 0.95 1.47
Price to free cash flow n/m n/m 8.72
EV/EBITDA 5.75 3.15 6.85
EV/Sales 15.26 2.06 1.87
Earnings yield 17.95% 8.54% 1.66%
Free cash flow yield (11.41%) (11.07%) 5.53%

Profitability

Metric AD TDS Telecom Services median
Gross margin 58.36% 59.35% 51.26%
Operating margin 241.34% 37.03% 7.62%
Net margin 250.79% 27.70% 4.22%
Free cash flow margin (159.33%) (35.96%) 4.73%
Return on equity 18.20% 7.68% 5.80%
Return on assets 7.79% 3.18% 0.00%
Return on invested capital 20.82% 7.49% 3.41%

Growth

Metric AD TDS Telecom Services median
Revenue growth (TTM) 112.42% 304.86% 3.31%
EPS growth (last fiscal year) 221.74% 23.53% —
Revenue growth, 5-year CAGR (47.37%) (25.14%) 1.50%
Net income growth, 5-year CAGR (26.61%) 0.00% 0.00%

Health

Metric AD TDS Telecom Services median
Debt to equity 0.54 0.13 0.63
Current ratio 0.95 3.82 1.13
Net debt to EBITDA (12.67) 0.25 1.86

Dividend

Metric AD TDS Telecom Services median
Dividend yield — 3.99% 4.06%
Payout ratio 0.00 1.74 0.00

Size

Metric AD TDS Telecom Services median
Market cap 2.98b 3.91b 3.06b

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