Critical Review: Powerstorm (OTCMKTS:PSTO) versus Telephone and Data Systems (NYSE:TDS)

Powerstorm (OTCMKTS:PSTO) and Telephone and Data Systems (NYSE:TDS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Powerstorm and Telephone and Data Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerstorm	0	0	0	0	N/A
Telephone and Data Systems	0	1	2	0	2.67

Telephone and Data Systems has a consensus price target of $25.00, suggesting a potential upside of 18.54%. Given Telephone and Data Systems’ higher possible upside, analysts plainly believe Telephone and Data Systems is more favorable than Powerstorm.

Earnings and Valuation

This table compares Powerstorm and Telephone and Data Systems’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powerstorm	N/A	N/A	N/A	N/A	N/A
Telephone and Data Systems	$5.16 billion	0.46	-$500.00 million	($4.87)	-4.33

Powerstorm has higher earnings, but lower revenue than Telephone and Data Systems.

Insider & Institutional Ownership

80.0% of Telephone and Data Systems shares are held by institutional investors. 14.5% of Telephone and Data Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Powerstorm and Telephone and Data Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powerstorm	N/A	N/A	N/A
Telephone and Data Systems	-9.36%	0.62%	0.23%

Risk and Volatility

Powerstorm has a beta of -0.49, indicating that its share price is 149% less volatile than the S&P 500. Comparatively, Telephone and Data Systems has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

Telephone and Data Systems beats Powerstorm on 8 of the 9 factors compared between the two stocks.

About Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.

About Telephone and Data Systems

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers, and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, fixed wireless home internet, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products. It also provides replace and repair services; Trade-In program through which it buys customers' used equipment; internet connections and all-home Wi-Fi services; TDS TV+, an integrated cloud television platform that offers video content and features; local and long-distance telephone service, voice over internet protocol, and enhanced services; broadband, IP-based services, and hosted voice and video collaboration services; and communication services in underserved areas. The company sells its products through retail stores, direct and indirect sales, third-party retailers, and independent agents, as well as through ecommerce and telesales. Telephone and Data Systems, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.