Millicom International Cellular (NASDAQ: TIGO) is one of 21 publicly-traded companies in the “Radiotelephone communication” industry, but how does it contrast to its peers? We will compare Millicom International Cellular to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, risk, dividends and earnings.

Risk and Volatility

Millicom International Cellular has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Millicom International Cellular’s peers have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Millicom International Cellular and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Millicom International Cellular -0.18% 0.91% 0.29%
Millicom International Cellular Competitors 11.87% 11.21% 6.05%

Earnings and Valuation

This table compares Millicom International Cellular and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Millicom International Cellular $4.07 billion -$10.00 million 212.24
Millicom International Cellular Competitors $15.12 billion $882.77 million 46.63

Millicom International Cellular’s peers have higher revenue and earnings than Millicom International Cellular. Millicom International Cellular is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

1.8% of Millicom International Cellular shares are owned by institutional investors. Comparatively, 25.3% of shares of all “Radiotelephone communication” companies are owned by institutional investors. 8.6% of shares of all “Radiotelephone communication” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 4.3%. Millicom International Cellular pays out 910.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Radiotelephone communication” companies pay a dividend yield of 3.6% and pay out 69.8% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Millicom International Cellular and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Millicom International Cellular 0 0 0 0 N/A
Millicom International Cellular Competitors 258 633 828 32 2.36

As a group, “Radiotelephone communication” companies have a potential upside of 16.08%. Given Millicom International Cellular’s peers higher possible upside, analysts clearly believe Millicom International Cellular has less favorable growth aspects than its peers.

Summary

Millicom International Cellular peers beat Millicom International Cellular on 10 of the 12 factors compared.

About Millicom International Cellular

Millicom International Cellular S.A. provides cable and mobile services in Latin America and Africa. The company offers mobile services, including mobile data and voice; short message service; and mobile financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance. It also fixed services, including broadband, fixed voice, and pay-TV to residential consumers; and mobile, fixed, and value-added services to large, small, and medium businesses, as well as governmental entities As of December 31, 2018, the company served 48.3 million business-to-consumer mobile customers; and 4.1 million connected homes. It markets its products and services under Tigo and Tigo Business brands. Millicom International Cellular S.A. was founded in 1990 and is headquartered in Luxembourg City, Luxembourg.

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