Head to Head Survey: T-Mobile US (NASDAQ:TMUS) vs. uCloudlink Group (NASDAQ:UCL)
by Kim Johansen · The Markets DailyuCloudlink Group (NASDAQ:UCL – Get Free Report) and T-Mobile US (NASDAQ:TMUS – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional & Insider Ownership
85.5% of uCloudlink Group shares are owned by institutional investors. Comparatively, 42.5% of T-Mobile US shares are owned by institutional investors. 54.6% of uCloudlink Group shares are owned by company insiders. Comparatively, 0.3% of T-Mobile US shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares uCloudlink Group and T-Mobile US’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| uCloudlink Group | -0.31% | -0.88% | -0.37% |
| T-Mobile US | 11.45% | 20.16% | 5.41% |
Volatility & Risk
uCloudlink Group has a beta of 4.2, suggesting that its stock price is 320% more volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations for uCloudlink Group and T-Mobile US, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| uCloudlink Group | 1 | 0 | 0 | 0 | 1.00 |
| T-Mobile US | 0 | 8 | 21 | 1 | 2.77 |
T-Mobile US has a consensus price target of $252.08, suggesting a potential upside of 38.99%. Given T-Mobile US’s stronger consensus rating and higher possible upside, analysts clearly believe T-Mobile US is more favorable than uCloudlink Group.
Valuation & Earnings
This table compares uCloudlink Group and T-Mobile US”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| uCloudlink Group | $81.45 million | 0.18 | $6.30 million | ($0.01) | -38.26 |
| T-Mobile US | $88.31 billion | 2.20 | $10.99 billion | $9.55 | 18.99 |
T-Mobile US has higher revenue and earnings than uCloudlink Group. uCloudlink Group 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
T-Mobile US beats uCloudlink Group on 12 of the 15 factors compared between the two stocks.
About uCloudlink Group
uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.
About T-Mobile US
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. The company was founded in 1994 and is headquartered in Bellevue, Washington.