Comparing Millicom International Cellular (NASDAQ:TIGO) & Telecom Argentina Stet – France Telecom (NYSE:TEO)

Telecom Argentina Stet – France Telecom (NYSE:TEO) and Millicom International Cellular (NASDAQ:TIGO) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Volatility and Risk

Telecom Argentina Stet – France Telecom has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Millicom International Cellular has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Telecom Argentina Stet – France Telecom and Millicom International Cellular’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Argentina Stet – France Telecom	7.61%	9.38%	4.11%
Millicom International Cellular	9.19%	18.39%	3.12%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Telecom Argentina Stet – France Telecom and Millicom International Cellular, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Argentina Stet – France Telecom	1	2	3	0	2.33
Millicom International Cellular	1	3	3	0	2.29

Telecom Argentina Stet – France Telecom currently has a consensus price target of $15.93, suggesting a potential upside of 19.93%. Millicom International Cellular has a consensus price target of $85.68, suggesting a potential downside of 11.37%. Given Telecom Argentina Stet – France Telecom’s stronger consensus rating and higher probable upside, research analysts plainly believe Telecom Argentina Stet – France Telecom is more favorable than Millicom International Cellular.

Valuation & Earnings

This table compares Telecom Argentina Stet – France Telecom and Millicom International Cellular”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Argentina Stet – France Telecom	$6.81 billion	0.84	-$136.01 million	$1.23	10.80
Millicom International Cellular	$5.82 billion	2.81	$1.32 billion	$3.96	24.41

Millicom International Cellular has lower revenue, but higher earnings 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.

Summary

Millicom International Cellular beats Telecom Argentina Stet – France Telecom on 6 of the 11 factors compared between the two stocks.

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.

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.