NTT (OTCMKTS:NTTYY) & Millicom International Cellular (NASDAQ:TIGO) Head-To-Head Contrast

Millicom International Cellular (NASDAQ:TIGO) and NTT (OTCMKTS:NTTYY) are both large-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Volatility and Risk

Millicom International Cellular has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, NTT has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.

Dividends

Millicom International Cellular pays an annual dividend of $3.00 per share and has a dividend yield of 3.1%. NTT pays an annual dividend of $0.62 per share and has a dividend yield of 2.2%. Millicom International Cellular pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NTT pays out 29.7% of its earnings in the form of a dividend.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millicom International Cellular	$5.82 billion	2.79	$1.32 billion	$3.96	24.23
NTT	$95.72 billion	0.95	$6.84 billion	$2.09	13.35

NTT has higher revenue and earnings than Millicom International Cellular. NTT 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 NTT’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%
NTT	7.17%	10.43%	2.45%

Insider and Institutional Ownership

0.1% of NTT shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Millicom International Cellular and NTT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millicom International Cellular	1	3	3	0	2.29
NTT	0	2	0	0	2.00

Millicom International Cellular currently has a consensus price target of $85.68, suggesting a potential downside of 10.72%. Given Millicom International Cellular’s stronger consensus rating and higher probable upside, analysts plainly believe Millicom International Cellular is more favorable than NTT.

Summary

Millicom International Cellular beats NTT on 11 of the 15 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 NTT

Nippon Telegraph and Telephone Corporation operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. The Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers consulting, system and software development, network system, cloud, global data center, and related services. The Others segment engages in the real estate, energy, and other businesses. The company was founded in 1952 and is headquartered in Tokyo, Japan.