Liberty Latin America (NASDAQ:LILA – Get Free Report) and T-Mobile US (NASDAQ:TMUS – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
Profitability
This table compares Liberty Latin America and T-Mobile US’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Latin America | -16.57% | -54.11% | -5.95% |
| T-Mobile US | 13.83% | 19.76% | 5.67% |
Institutional and Insider Ownership
18.5% of Liberty Latin America shares are owned by institutional investors. Comparatively, 42.5% of T-Mobile US shares are owned by institutional investors. 12.0% of Liberty Latin America shares are owned by company insiders. Comparatively, 0.4% of T-Mobile US shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Latin America | 2 | 0 | 1 | 0 | 1.67 |
| T-Mobile US | 0 | 13 | 17 | 3 | 2.70 |
Liberty Latin America presently has a consensus price target of $9.75, indicating a potential upside of 30.17%. T-Mobile US has a consensus price target of $257.76, indicating a potential upside of 38.34%. Given T-Mobile US’s stronger consensus rating and higher probable upside, analysts plainly believe T-Mobile US is more favorable than Liberty Latin America.
Valuation & Earnings
This table compares Liberty Latin America and T-Mobile US”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Latin America | $4.46 billion | 0.34 | -$657.00 million | ($3.69) | -2.03 |
| T-Mobile US | $81.40 billion | 2.56 | $11.34 billion | $10.40 | 17.92 |
T-Mobile US has higher revenue and earnings than Liberty Latin America. Liberty Latin America 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.
Volatility and Risk
Liberty Latin America has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, T-Mobile US has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
Summary
T-Mobile US beats Liberty Latin America on 13 of the 15 factors compared between the two stocks.
About Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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.
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