IDT Corporation (IDT) vs Telephone and Data Systems, Inc. (TDS)

IDT Corporation and Telephone and Data Systems, Inc. are both Telecom Services companies. Telephone and Data Systems, Inc. is the larger, with a market value of $3.5B against $2.2B — 1.6× the size. Telephone and Data Systems, Inc. trades at the lower P/E: 10.8× against 23.8×. IDT Corporation grew revenue faster over the last twelve months: 5.40% against −58.8%. Telephone and Data Systems, Inc. has the higher net margin (27.7% vs 6.67%) and the higher return on invested capital (7.49% vs 0.00%). Both pay a dividend; Telephone and Data Systems, Inc. yields more (0.49% vs 0.33%). Across the 22 metrics below, Telephone and Data Systems, Inc. leads on 12 and IDT Corporation on 10.

Valuation

Metric IDT TDS Telecom Services median
P/E 23.76 10.77 13.01
P/S 1.59 3.00 0.99
P/B 5.20 0.87 1.45
Price to free cash flow 30.32 n/m 8.12
EV/EBITDA 11.71 2.75 7.21
EV/Sales 1.29 1.80 1.85
Earnings yield 4.21% 9.28% 3.38%
Free cash flow yield 3.30% (12.04%) 4.06%

Profitability

Metric IDT TDS Telecom Services median
Gross margin 38.27% 59.35% 50.22%
Operating margin 9.34% 37.03% 9.22%
Net margin 6.67% 27.70% 4.63%
Free cash flow margin 5.24% (35.96%) 2.87%
Return on equity 24.23% 7.68% 5.62%
Return on assets 12.46% 3.18% 0.74%
Return on invested capital 0.00% 7.49% 3.53%

Growth

Metric IDT TDS Telecom Services median
Revenue growth (TTM) 5.40% (58.80%) 5.40%
EPS growth (last fiscal year) 14.95% 23.53% 0.62%
Revenue growth, 5-year CAGR (2.15%) (25.14%) 2.53%
Net income growth, 5-year CAGR (2.13%) 0.00% 0.00%

Health

Metric IDT TDS Telecom Services median
Debt to equity 0.00 0.13 0.56
Current ratio 1.86 3.82 0.97
Net debt to EBITDA (2.88) 0.25 1.86

Dividend

Metric IDT TDS Telecom Services median
Dividend yield 0.33% 0.49% 2.52%
Payout ratio 0.08 0.05 0.40

Size

Metric IDT TDS Telecom Services median
Market cap 2.17b 3.48b 3.00b

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