Comparison of InterDigital Inc. (IDCC) and United States Cellular Corporation (NYSE:USM)

Both InterDigital Inc. (NASDAQ:IDCC) and United States Cellular Corporation (NYSE:USM) are each other’s competitor in the Wireless Communications industry. Thus the contrast of their dividends, analyst recommendations, profitability, risk, institutional ownership, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InterDigital Inc. 307.40M 7.17 63.87M 1.27 53.44
United States Cellular Corporation 3.97B 1.03 150.00M 1.69 27.56

Table 1 shows the gross revenue, earnings per share and valuation for InterDigital Inc. and United States Cellular Corporation. United States Cellular Corporation has higher revenue and earnings than InterDigital Inc. The company that is presently more expensive of the two stocks is the one that has a higher P/E ratio. InterDigital Inc. is presently more expensive than United States Cellular Corporation, because it’s trading at a higher P/E ratio.

Profitability

Table 2 shows InterDigital Inc. and United States Cellular Corporation’s return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
InterDigital Inc. 20.78% 6.4% 3.8%
United States Cellular Corporation 3.78% 3.8% 2.1%

Risk and Volatility

A 1.18 beta indicates that InterDigital Inc. is 18.00% more volatile compared to Standard and Poor’s 500. Competitively, United States Cellular Corporation’s beta is 0.66 which is 34.00% less volatile than Standard and Poor’s 500.

Liquidity

The current Quick Ratio of InterDigital Inc. is 5.7 while its Current Ratio is 5.7. Meanwhile, United States Cellular Corporation has a Current Ratio of 2.6 while its Quick Ratio is 2.4. InterDigital Inc. is better positioned to pay off its short-term and long-term debts than United States Cellular Corporation.

Dividends

$1.4 per share with a dividend yield of 2.09% is the annual dividend that InterDigital Inc. pay. No dividend is paid out for United States Cellular Corporation.

Analyst Ratings

Ratings and Recommendations for InterDigital Inc. and United States Cellular Corporation can be find in next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
InterDigital Inc. 0 0 1 3.00
United States Cellular Corporation 0 1 1 2.50

InterDigital Inc. has a 33.12% upside potential and a consensus target price of $90. Competitively United States Cellular Corporation has a consensus target price of $53, with potential upside of 12.34%. The information presented earlier suggests that InterDigital Inc. looks more robust than United States Cellular Corporation as far as analyst view.

Institutional & Insider Ownership

The shares of both InterDigital Inc. and United States Cellular Corporation are owned by institutional investors at 78.9% and 27.2% respectively. Insiders owned roughly 1.1% of InterDigital Inc.’s shares. Insiders Competitively, owned 0.2% of United States Cellular Corporation shares.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
InterDigital Inc. -2.03% -6.63% -7.89% -17.85% -4.25% 2.33%
United States Cellular Corporation -2.36% -18.93% -19.88% 6.58% 17.88% -10.18%

For the past year InterDigital Inc. has 2.33% stronger performance while United States Cellular Corporation has -10.18% weaker performance.

Summary

On 12 of the 16 factors InterDigital Inc. beats United States Cellular Corporation.

InterDigital, Inc. designs and develops technologies that enable and enhance wireless communications in the United States and internationally. It offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. The company develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, and 4G wireless networks and mobile terminal devices; and other wireless technologies related to Wi-Fi, WLAN, WMAN, and WRAN. Its patented technologies are used in various products, including mobile devices comprising cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment consisting of base stations; components, dongles, and modules for wireless devices; and Internet of Things devices and software platforms. The company also provides interoperability and scalability solutions across various vertical markets, networks, and devices through oneMPOWER platform; and common interface to multiple service providers through wot.io data service exchange for connected device platforms, as well as sensor and sensor fusion technology solutions. As of December 31, 2016, it had a portfolio of approximately 20,000 patents and patent applications related to the fundamental technologies that enable wireless communications. InterDigital, Inc. was founded in 1972 and is headquartered in Wilmington, Delaware.