Comparing Millicom International Cellular (NASDAQ:TIGO) & MTN Group (OTCMKTS:MTNOY)

MTN Group (OTCMKTS:MTNOY) and Millicom International Cellular (NASDAQ:TIGO) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Earnings & Valuation

This table compares MTN Group and Millicom International Cellular”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MTN Group	$10.27 billion	1.74	-$523.72 million	N/A	N/A
Millicom International Cellular	$5.59 billion	1.73	$253.00 million	$6.53	8.59

Millicom International Cellular has lower revenue, but higher earnings than MTN Group.

Risk & Volatility

MTN Group has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Millicom International Cellular has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for MTN Group and Millicom International Cellular, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MTN Group	1	0	0	1	2.50
Millicom International Cellular	0	5	3	1	2.56

Millicom International Cellular has a consensus price target of $43.47, indicating a potential downside of 22.52%. Given Millicom International Cellular’s stronger consensus rating and higher probable upside, analysts plainly believe Millicom International Cellular is more favorable than MTN Group.

Profitability

This table compares MTN Group and Millicom International Cellular’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MTN Group	N/A	N/A	N/A
Millicom International Cellular	16.97%	10.32%	2.59%

Dividends

MTN Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Millicom International Cellular pays an annual dividend of $3.00 per share and has a dividend yield of 5.3%. Millicom International Cellular pays out 45.9% of its earnings in the form of a dividend.

Summary

Millicom International Cellular beats MTN Group on 8 of the 12 factors compared between the two stocks.

About MTN Group

MTN Group Limited, together with its subsidiaries, provides mobile telecommunications services in South Africa, Nigeria, East Africa, West and Central Africa, and the Middle East and North Africa. The company offers data, voice and SMS, digital and fintech, interconnect, and roaming services, as well as sells mobile devices. It also provides network as a service, including subsea cables that offers international connectivity services; terrestrial and metro fiber networks; data centers and cable landing stations; and FTTx, towers, and radio access networks. The company also offers digital financial services, such as access payments, e-commerce, insurance, and lending and remittance services; enterprise services comprising manage networks, unified and cloud communication, security as a service, and Internet of Things; and API products and services for telecommunications, health, government, financial services, entertainment, and other sectors. MTN Group Limited was incorporated in 1994 and is based in Johannesburg, South Africa.

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.