How does TDS's margin performance stack up against its telecom peers?

Fundamental view – margins:

TDS’s Q2‑2025 release highlighted a stable operating margin in the high‑30% range (≈ 33‑35% on a GAAP basis) and an EBITDA margin near 38%. Those figures sit comfortably above the “big‑ticket” telecom operators that are still wrestling with heavy‑capex cycles—AT&T (operating margin ~ 24% in Q2‑2025) and Verizon (≈ 26%). Even Comcast, which benefits from a sizable broadband franchise, reported an operating margin of roughly 28% for the same period. TDS’s comparatively lighter network‑intensity and a higher proportion of recurring, contract‑based data‑and‑voice services translate into a margin premium of roughly 7‑9 percentage points versus the sector median.

Technical & trading angle:

The market has already priced in TDS’s margin advantage; the stock is trading at a P/EBITDA multiple of ~ 9×, versus ~ 7× for AT&T and Verizon and ~ 8× for Comcast. The price‑to‑earnings (P/E) ratio is also modestly elevated (≈ 15× vs. 12‑13× for peers). With the margin spread intact and the company’s cap‑ex guidance indicating a sub‑10% YoY increase—well below the 15‑20% growth rates of the larger carriers—TDS is positioned to expand its earnings‑yield relative to the broader telecom index.

Actionable insight:

If you’re looking for a telecom play that offers higher profitability with less exposure to capital‑intensive roll‑outs, TDS remains a relative value in the sector. A long position could be justified on the basis of its superior margin profile and attractive yield, especially if the broader market corrects on the “big‑carrier” earnings‑growth narrative. Conversely, watch for any margin compression signals (e.g., rising churn or price‑competition in its data‑services segment) that could narrow the spread and trigger a pull‑back. In short, TDS’s margin performance is significantly stronger than its telecom peers, supporting a bullish stance for risk‑adjusted return seekers.