Comparing T-Mobile Us (TMUS) and Millicom International Cellular (TIGO)

T-Mobile Us (NASDAQ:TMUS) and Millicom International Cellular (NASDAQ:TIGO) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Valuation and Earnings

This table compares T-Mobile Us and Millicom International Cellular’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
T-Mobile Us $43.31 billion 1.34 $4.54 billion $3.36 20.35
Millicom International Cellular $4.07 billion 1.51 $85.00 million $0.29 209.90

T-Mobile Us has higher revenue and earnings than Millicom International Cellular. T-Mobile Us 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.

Risk and Volatility

T-Mobile Us has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Millicom International Cellular has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Dividends

Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 4.3%. T-Mobile Us does not pay a dividend. 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for T-Mobile Us and Millicom International Cellular, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
T-Mobile Us 0 1 13 1 3.00
Millicom International Cellular 0 0 0 0 N/A

T-Mobile Us currently has a consensus price target of $78.85, indicating a potential upside of 15.31%. Given T-Mobile Us’ higher possible upside, equities research analysts plainly believe T-Mobile Us is more favorable than Millicom International Cellular.

Profitability

This table compares T-Mobile Us and Millicom International Cellular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
T-Mobile Us 6.67% 12.27% 4.09%
Millicom International Cellular -0.18% 0.87% 0.30%

Insider and Institutional Ownership

32.9% of T-Mobile Us shares are owned by institutional investors. Comparatively, 1.7% of Millicom International Cellular shares are owned by institutional investors. 0.4% of T-Mobile Us shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

T-Mobile Us beats Millicom International Cellular on 12 of the 16 factors compared between the two stocks.

T-Mobile Us Company Profile

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 72.6 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices, as well as accessories that are manufactured by various suppliers. In addition, the company offers services, devices, and accessories under the T-Mobile and MetroPCS brands through its owned and operated retail stores, third party distributors, and its Websites. It also sells its devices to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. As of December 31, 2017, T-Mobile US, Inc. operated approximately 2,200 T-Mobile and MetroPCS retail locations, including stores and kiosks. The company was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. is a subsidiary of Deutsche Telekom AG.

Millicom International Cellular Company Profile

Millicom International Cellular SA engages in the provision of cable and mobile services in Latin America and Africa. It operates through the Latin America and Africa segments. The company was founded on December 14, 1990 and is headquartered in Luxembourg.

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