Head to Head Survey: Lumen Technologies (NYSE:LUMN) versus America Movil (NYSE:AMX)

America Movil (NYSE:AMX) and Lumen Technologies (NYSE:LUMN) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Volatility and Risk

America Movil has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Lumen Technologies has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for America Movil and Lumen Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
America Movil	0	3	4	2	2.89
Lumen Technologies	1	10	0	0	1.91

America Movil currently has a consensus target price of $29.43, suggesting a potential upside of 20.38%. Lumen Technologies has a consensus target price of $7.38, suggesting a potential upside of 51.13%. Given Lumen Technologies’ higher probable upside, analysts plainly believe Lumen Technologies is more favorable than America Movil.

Profitability

This table compares America Movil and Lumen Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
America Movil	9.38%	21.07%	5.03%
Lumen Technologies	-8.65%	N/A	-1.56%

Dividends

America Movil pays an annual dividend of $0.59 per share and has a dividend yield of 2.4%. Lumen Technologies pays an annual dividend of $1.00 per share and has a dividend yield of 20.5%. America Movil pays out 34.1% of its earnings in the form of a dividend. Lumen Technologies pays out -98.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lumen Technologies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares America Movil and Lumen Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
America Movil	$49.22 billion	1.49	$4.61 billion	$1.73	14.13
Lumen Technologies	$11.83 billion	0.43	-$1.74 billion	($1.02)	-4.78

America Movil has higher revenue and earnings than Lumen Technologies. Lumen Technologies is trading at a lower price-to-earnings ratio than America Movil, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

6.3% of America Movil shares are owned by institutional investors. Comparatively, 66.2% of Lumen Technologies shares are owned by institutional investors. 1.0% of America Movil shares are owned by company insiders. Comparatively, 2.3% of Lumen Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

America Movil beats Lumen Technologies on 11 of the 17 factors compared between the two stocks.

About America Movil

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging and other wireless entertainment, and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions to small businesses and large corporations; and cable and satellite television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. The company was incorporated in 2000 and is based in Mexico City, Mexico.

About Lumen Technologies

Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services to business and residential customers in the United States and internationally. The company operates in two segments, Business and Mass Markets. It offers dark fiber, edge cloud services, internet protocol, managed security, software-defined wide area networks, secure access service edge, unified communications and collaboration, and optical wavelengths services; ethernet and VPN data networks services; and legacy services to manage cash flow, including time division multiplexing voice, private line, and other legacy services, as well as sells communication equipment, and IT solutions. The company also provides high speed and lower speed broadband service to residential and small business customers; local and long-distance voice services, professional services, and other ancillary services; and federal broadband and state support programs. It serves its products and services under the Lumen, Quantum Fiber, and CenturyLink brands. The company was formerly known as CenturyLink, Inc. and changed its name to Lumen Technologies, Inc. in September 2020. Lumen Technologies, Inc. was incorporated in 1968 and is headquartered in Monroe, Louisiana.