Financial Comparison: Millicom International Cellular (NASDAQ:TIGO) versus Array Digital Infrastructure (NYSE:AD)

Millicom International Cellular (NASDAQ:TIGO) and Array Digital Infrastructure (NYSE:AD) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for Millicom International Cellular and Array Digital Infrastructure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millicom International Cellular	1	3	3	0	2.29
Array Digital Infrastructure	0	3	3	0	2.50

Millicom International Cellular presently has a consensus price target of $85.68, indicating a potential downside of 9.65%. Array Digital Infrastructure has a consensus price target of $47.40, indicating a potential upside of 22.86%. Given Array Digital Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe Array Digital Infrastructure is more favorable than Millicom International Cellular.

Earnings & Valuation

This table compares Millicom International Cellular and Array Digital Infrastructure”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millicom International Cellular	$5.82 billion	2.75	$1.32 billion	$3.96	23.95
Array Digital Infrastructure	$162.96 million	20.48	$48.76 million	$6.20	6.22

Millicom International Cellular has higher revenue and earnings than Array Digital Infrastructure. Array Digital Infrastructure 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.

Profitability

This table compares Millicom International Cellular and Array Digital Infrastructure’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%
Array Digital Infrastructure	250.79%	8.52%	4.15%

Insider & Institutional Ownership

18.0% of Array Digital Infrastructure shares are owned by institutional investors. 0.5% of Millicom International Cellular shares are owned by company insiders. Comparatively, 0.1% of Array Digital Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Millicom International Cellular has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Array Digital Infrastructure has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Summary

Array Digital Infrastructure beats Millicom International Cellular on 7 of the 13 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 Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.