Head-To-Head Comparison: Ruckus Wireless (NYSE:RKUS) & TIM Participacoes (TSU)

Ruckus Wireless (NYSE: RKUS) and TIM Participacoes (NYSE:TSU) are both wireless telecommunications services – nec companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares Ruckus Wireless and TIM Participacoes’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ruckus Wireless N/A N/A N/A $0.05 257.40
TIM Participacoes $4.50 billion 1.93 $215.14 million $0.57 31.40

TIM Participacoes has higher revenue and earnings than Ruckus Wireless. TIM Participacoes is trading at a lower price-to-earnings ratio than Ruckus Wireless, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

16.7% of TIM Participacoes shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Ruckus Wireless and TIM Participacoes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruckus Wireless -0.92% -1.17% -0.88%
TIM Participacoes 5.57% 5.71% 3.02%

Analyst Recommendations

This is a summary of current ratings and price targets for Ruckus Wireless and TIM Participacoes, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruckus Wireless 0 0 0 0 N/A
TIM Participacoes 0 1 5 0 2.83

TIM Participacoes has a consensus price target of $19.25, indicating a potential upside of 7.54%. Given TIM Participacoes’ higher probable upside, analysts plainly believe TIM Participacoes is more favorable than Ruckus Wireless.

Dividends

TIM Participacoes pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Ruckus Wireless does not pay a dividend. TIM Participacoes pays out 12.3% of its earnings in the form of a dividend. TIM Participacoes has increased its dividend for 4 consecutive years.

Summary

TIM Participacoes beats Ruckus Wireless on 10 of the 11 factors compared between the two stocks.

About Ruckus Wireless

Ruckus Wireless, Inc. is a supplier of advanced (Wi-Fi) solutions. The Company’s solutions, which it call Smart Wi-Fi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with wireless traffic demands. It operates through selling controllers and access points along with related software and services segment. The Company markets and sells its products and technology through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality, such as enhanced reliability, extended range and scalability. Its products include controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions, including reporting and analytics, and Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices.

About TIM Participacoes

TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.

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