Critical Analysis: Millicom International Cellular (TIGO) and Its Rivals
Millicom International Cellular (NASDAQ: TIGO) is one of 98 public companies in the “Telecom Services” industry, but how does it contrast to its rivals? We will compare Millicom International Cellular to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.
Risk and Volatility
Millicom International Cellular has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Millicom International Cellular’s rivals have a beta of 0.95, indicating that their average share price is 5% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Millicom International Cellular and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Millicom International Cellular||0||0||0||0||N/A|
|Millicom International Cellular Competitors||702||2679||3972||163||2.48|
As a group, “Telecom Services” companies have a potential upside of 16.42%. Given Millicom International Cellular’s rivals higher possible upside, analysts plainly believe Millicom International Cellular has less favorable growth aspects than its rivals.
Institutional & Insider Ownership
1.8% of Millicom International Cellular shares are owned by institutional investors. Comparatively, 68.2% of shares of all “Telecom Services” companies are owned by institutional investors. 3.6% of shares of all “Telecom Services” companies are owned by 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.
Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 4.2%. 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, “Telecom Services” companies pay a dividend yield of 1.3% and pay out 24.9% of their earnings in the form of a dividend.
This table compares Millicom International Cellular and its rivals’ 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||-47.68%||6.18%||1.93%|
Valuation and Earnings
This table compares Millicom International Cellular and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Millicom International Cellular||$4.07 billion||-$10.00 million||216.41|
|Millicom International Cellular Competitors||$51.66 billion||$2.31 billion||19.25|
Millicom International Cellular’s rivals have higher revenue and earnings than Millicom International Cellular. Millicom International Cellular is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Millicom International Cellular rivals beat Millicom International Cellular on 9 of the 12 factors compared.
Millicom International Cellular Company Profile
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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