Analyzing Array Digital Infrastructure (AD) and Its Competitors

Array Digital Infrastructure (NYSE:AD) is one of 204 publicly-traded companies in the “Diversified Telecommunication Services” industry, but how does it contrast to its peers? We will compare Array Digital Infrastructure to similar businesses based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, earnings, risk and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Array Digital Infrastructure and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Array Digital Infrastructure	0	4	3	0	2.43
Array Digital Infrastructure Competitors	1675	5121	7356	369	2.44

Array Digital Infrastructure currently has a consensus price target of $51.60, suggesting a potential upside of 47.55%. As a group, “Diversified Telecommunication Services” companies have a potential upside of 27.75%. Given Array Digital Infrastructure’s higher probable upside, equities analysts plainly believe Array Digital Infrastructure is more favorable than its peers.

Valuation and Earnings

This table compares Array Digital Infrastructure and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Array Digital Infrastructure	$187.99 million	$48.76 million	14.51
Array Digital Infrastructure Competitors	$106.56 billion	$1.02 billion	-179.02

Array Digital Infrastructure’s peers have higher revenue and earnings than Array Digital Infrastructure. Array Digital Infrastructure is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

18.0% of Array Digital Infrastructure shares are held by institutional investors. Comparatively, 32.4% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 0.1% of Array Digital Infrastructure shares are held by insiders. Comparatively, 19.2% of shares of all “Diversified Telecommunication Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Array Digital Infrastructure has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Array Digital Infrastructure’s peers have a beta of -4.73, indicating that their average stock price is 573% less volatile than the S&P 500.

Profitability

This table compares Array Digital Infrastructure and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Array Digital Infrastructure	19.32%	6.69%	3.24%
Array Digital Infrastructure Competitors	-33.01%	-114.22%	-1.95%

Summary

Array Digital Infrastructure peers beat Array Digital Infrastructure on 7 of the 13 factors compared.

About Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.