Iridium Communications Inc (IRDM) vs Telephone and Data Systems, Inc. (TDS)

Iridium Communications Inc and Telephone and Data Systems, Inc. are both Telecom Services companies. Iridium Communications Inc is the larger, with a market value of $4.5B against $3.5B — 1.3× the size. Telephone and Data Systems, Inc. trades at the lower P/E: 10.6× against 27.9×. Iridium Communications Inc grew revenue faster over the last twelve months: 3.59% against −58.8%. Telephone and Data Systems, Inc. has the higher net margin (27.7% vs 18.1%) and the higher return on invested capital (7.49% vs 4.10%). Both pay a dividend; Iridium Communications Inc yields more (1.42% vs 0.49%). Across the 21 metrics below, Telephone and Data Systems, Inc. leads on 13 and Iridium Communications Inc on 8.

Valuation

Metric IRDM TDS Telecom Services median
P/E 27.93 10.62 12.29
P/S 5.01 2.96 0.94
P/B 7.85 0.86 1.25
Price to free cash flow 16.31 n/m 8.15
EV/EBITDA 16.56 2.68 7.05
EV/Sales 7.28 1.75 1.79
Earnings yield 3.58% 9.42% 3.40%
Free cash flow yield 6.13% (12.22%) 4.48%

Profitability

Metric IRDM TDS Telecom Services median
Gross margin 71.46% 59.35% 48.78%
Operating margin 19.00% 37.03% 9.22%
Net margin 18.06% 27.70% 6.67%
Free cash flow margin 30.74% (35.96%) 2.87%
Return on equity 31.74% 7.68% 6.00%
Return on assets 5.79% 3.18% 1.50%
Return on invested capital 4.10% 7.49% 3.77%

Growth

Metric IRDM TDS Telecom Services median
Revenue growth (TTM) 3.59% (58.80%) 5.40%
EPS growth (last fiscal year) 12.77% 23.53% 0.62%
Revenue growth, 5-year CAGR 8.36% (25.14%) 2.53%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric IRDM TDS Telecom Services median
Debt to equity 3.71 0.13 0.57
Current ratio 0.91 3.82 1.09
Net debt to EBITDA 3.71 0.25 1.86

Dividend

Metric IRDM TDS Telecom Services median
Dividend yield 1.42% 0.49% 2.55%
Payout ratio 0.40 0.05 0.40

Size

Metric IRDM TDS Telecom Services median
Market cap 4.46b 3.48b 3.16b

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