Millicom International Cellular (NASDAQ:TIGO – Get Free Report) and Telecom Argentina Stet – France Telecom (NYSE:TEO – Get Free Report) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
Analyst Ratings
This is a summary of recent recommendations and price targets for Millicom International Cellular and Telecom Argentina Stet – France Telecom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Millicom International Cellular | 1 | 3 | 3 | 0 | 2.29 |
| Telecom Argentina Stet – France Telecom | 1 | 2 | 3 | 0 | 2.33 |
Millicom International Cellular currently has a consensus price target of $85.68, suggesting a potential downside of 10.46%. Telecom Argentina Stet – France Telecom has a consensus price target of $15.93, suggesting a potential upside of 13.47%. Given Telecom Argentina Stet – France Telecom’s stronger consensus rating and higher possible upside, analysts clearly believe Telecom Argentina Stet – France Telecom is more favorable than Millicom International Cellular.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Millicom International Cellular | $5.82 billion | 2.78 | $1.32 billion | $3.96 | 24.16 |
| Telecom Argentina Stet – France Telecom | $8,926.69 billion | 0.00 | -$136.01 million | $1.23 | 11.41 |
Millicom International Cellular has higher earnings, but lower revenue than Telecom Argentina Stet – France Telecom. Telecom Argentina Stet – France Telecom is trading at a lower price-to-earnings ratio than Millicom International Cellular, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Millicom International Cellular has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Telecom Argentina Stet – France Telecom has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Profitability
This table compares Millicom International Cellular and Telecom Argentina Stet – France Telecom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Millicom International Cellular | 9.19% | 18.39% | 3.12% |
| Telecom Argentina Stet – France Telecom | 7.61% | 9.38% | 4.11% |
Summary
Millicom International Cellular beats Telecom Argentina Stet – France Telecom on 6 of the 11 factors compared between the two stocks.
About Millicom International Cellular
Millicom International Cellular S.A. provides cable and mobile services in Latin America. It offers mobile services, including mobile data and voice, and short message services; and mobile financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance. The company also operates TIGO Sports for local entertainment; Tigo Money that allows its customers to send and receive money without the need for a bank account; and TIGO ONEtv for pay TV. In addition, it provides fixed services, including broadband and fixed voice; and fixed-voice and data telecommunications services, managed services, cloud and security solutions, and value-added services; and tower infrastructure and services. The company serves small, medium, and large businesses, as well as residential consumers and governmental entities. It markets its products and services under the Tigo and Tigo Business brands. The company was founded in 1990 and is headquartered in Luxembourg.
About Telecom Argentina Stet – France Telecom
Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services. The company offers mobile telecommunications services, including voice communications, high-speed mobile Internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, Modems MiFi and wingles, and smart watches. It also internet connectivity products, including virtual private network services, traditional Internet protocol links, and other products; and programming and other cable television services. In addition, the company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it provides Infrastructure, interconnection, datacenter, Internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric Internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service; and management and administration services. The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018. Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.
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