Maxcom Telecomunic (OTCMKTS:MXMTY) and Telecom Argentina (NYSE:TEO) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

3.4% of Telecom Argentina shares are held by institutional investors. 1.0% of Telecom Argentina shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Maxcom Telecomunic has a beta of -1.86, suggesting that its share price is 286% less volatile than the S&P 500. Comparatively, Telecom Argentina has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Dividends

Telecom Argentina pays an annual dividend of $1.24 per share and has a dividend yield of 12.4%. Maxcom Telecomunic does not pay a dividend. Telecom Argentina pays out 364.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations and price targets for Maxcom Telecomunic and Telecom Argentina, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Maxcom Telecomunic 0 0 0 0 N/A
Telecom Argentina 1 2 0 0 1.67

Telecom Argentina has a consensus target price of $12.50, suggesting a potential upside of 25.50%. Given Telecom Argentina’s higher probable upside, analysts clearly believe Telecom Argentina is more favorable than Maxcom Telecomunic.

Earnings & Valuation

This table compares Maxcom Telecomunic and Telecom Argentina’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Maxcom Telecomunic $68.52 million 0.13 -$14.60 million N/A N/A
Telecom Argentina $4.53 billion 0.95 $187.94 million $0.34 29.29

Telecom Argentina has higher revenue and earnings than Maxcom Telecomunic.

Profitability

This table compares Maxcom Telecomunic and Telecom Argentina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Maxcom Telecomunic -24.46% -38.45% -9.85%
Telecom Argentina 7.39% 5.74% 3.40%

Summary

Telecom Argentina beats Maxcom Telecomunic on 11 of the 12 factors compared between the two stocks.

About Maxcom Telecomunic

Maxcom Telecomunicaciones S.A.B. de C.V. provides telecommunication services in Mexico. Its solutions include dedicated Internet; L2L, a service through a point-to-point circuit to create private networks by interconnecting two client addressing within the same local area; MPLS B-TIC service that allows the integration of IP traffic, including voice, data, or video in the same connection; 01800, a long distance service; and SIP TRUNKS, a voice over IP solution. The company serves various sectors in hospitality and health, finance, call center, education, government, retail, manufacture, and building, as well as other companies. Maxcom Telecomunicaciones S.A.B. de C.V. was founded in 1996 and is based in Mexico City, Mexico.

About Telecom Argentina

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services in Argentina and internationally. The company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; interconnection services, such as access, termination, and long-distance transport of calls; information and communication technology services comprising datacenter services, and telecommunications consulting and value-added solutions; and call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services, as well as sells equipment. It also provides mobile telecommunications services that include voice communications, high-speed mobile Internet content and applications download, mobile multimedia, short message, online streaming, corporate email, social network access, and other services; and sells mobile communication devices that include handsets, Modems mifi and wingles, smart watches under the Personal brand. In addition, the company offers data transmission and Internet services comprising broadband, Internet dedicated lines, private networks, national and international video streaming, transportation of radio and TV signals, and video conferencing services; and programming and other cable television services. The company was formerly known as CablevisiĆ³n 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.

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