Telephone and Data Systems, Inc. (TDS) vs VEON Ltd. (VEON)

Telephone and Data Systems, Inc. and VEON Ltd. are both Telecom Services companies. VEON Ltd. is the larger, with a market value of $4.6B against $3.9B — 1.2× the size. Telephone and Data Systems, Inc. trades at the lower P/E: 11.7× against 88.6×. Telephone and Data Systems, Inc. grew revenue faster over the last twelve months: 304.9% against 14.7%. Telephone and Data Systems, Inc. has the higher net margin (27.7% vs 1.24%) and the lower return on invested capital (7.49% vs 12.7%). Across the 20 metrics below, Telephone and Data Systems, Inc. leads on 12 and VEON Ltd. on 8.

Valuation

Metric TDS VEON Telecom Services median
P/E 11.72 88.58 13.27
P/S 3.26 1.08 0.95
P/B 0.95 2.67 1.47
Price to free cash flow n/m 7.50 8.72
EV/EBITDA 3.15 4.39 6.85
EV/Sales 2.06 1.74 1.87
Earnings yield 8.54% 1.13% 1.66%
Free cash flow yield (11.07%) 13.33% 5.53%

Profitability

Metric TDS VEON Telecom Services median
Gross margin 59.35% 87.07% 51.26%
Operating margin 37.03% 21.75% 7.62%
Net margin 27.70% 1.24% 4.22%
Free cash flow margin (35.96%) 14.35% 4.73%
Return on equity 7.68% 3.45% 5.80%
Return on assets 3.18% 0.63% 0.00%
Return on invested capital 7.49% 12.72% 3.41%

Growth

Metric TDS VEON Telecom Services median
Revenue growth (TTM) 304.86% 14.71% 3.31%
EPS growth (last fiscal year) 23.53% 29.49% —
Revenue growth, 5-year CAGR (25.14%) (9.61%) 1.50%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TDS VEON Telecom Services median
Debt to equity 0.13 3.05 0.63
Current ratio 3.82 0.97 1.13
Net debt to EBITDA 0.25 1.30 1.86

Dividend

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

Size

Metric TDS VEON Telecom Services median
Market cap 3.91b 4.62b 3.06b

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