Critical Contrast: Millicom International Cellular (NASDAQ:TIGO) & Deutsche Telekom (NASDAQ:DTEGY)
Millicom International Cellular (NASDAQ:TIGO) and Deutsche Telekom (OTCMKTS:DTEGY) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 4.6%. Deutsche Telekom pays an annual dividend of $0.75 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. Deutsche Telekom pays out 66.4% of its earnings in the form of a dividend.
This table compares Millicom International Cellular and Deutsche Telekom’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Millicom International Cellular||$4.07 billion||1.42||-$10.00 million||$0.29||198.34|
|Deutsche Telekom||$89.35 billion||0.92||$2.56 billion||$1.13||15.31|
Deutsche Telekom has higher revenue and earnings than Millicom International Cellular. Deutsche Telekom 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.
This table compares Millicom International Cellular and Deutsche Telekom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Millicom International Cellular||-0.25%||-0.24%||-0.07%|
Insider & Institutional Ownership
6.4% of Millicom International Cellular shares are owned by institutional investors. Comparatively, 0.1% of Deutsche Telekom 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.
Volatility and Risk
Millicom International Cellular has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.
This is a breakdown of recent ratings for Millicom International Cellular and Deutsche Telekom, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Millicom International Cellular||0||0||1||0||3.00|
Deutsche Telekom beats Millicom International Cellular on 8 of the 14 factors compared between the two stocks.
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.
About Deutsche Telekom
Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services worldwide. The company operates through five segments: Germany, United States, Europe, Systems Solutions, and Group Development. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. The company also provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. In addition, it offers Internet services; Internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and networks under the T-Systems brand, as well as call center services. The company has 178 million mobile customers, and approximately 28 million fixed-network and 20 million broadband lines. Deutsche Telekom AG was founded in 1995 and is headquartered in Bonn, Germany.
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