Comparing Telkom SA SOC (OTCMKTS:TLKGY) and América Móvil (NYSE:AMX)

Telkom SA SOC (OTCMKTS:TLKGY) and América Móvil (NYSE:AMX) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Earnings and Valuation

This table compares Telkom SA SOC and América Móvil’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telkom SA SOC	$2.88 billion	N/A	$177.26 million	N/A	N/A
América Móvil	$813.38 billion	0.06	$4.51 billion	$1.08	15.33

América Móvil has higher revenue and earnings than Telkom SA SOC.

Profitability

This table compares Telkom SA SOC and América Móvil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telkom SA SOC	N/A	N/A	N/A
América Móvil	3.98%	7.73%	2.01%

Insider & Institutional Ownership

6.3% of América Móvil shares are owned by institutional investors. 1.0% of América Móvil shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Telkom SA SOC has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, América Móvil has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Telkom SA SOC and América Móvil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telkom SA SOC	0	0	0	0	N/A
América Móvil	1	1	5	0	2.57

América Móvil has a consensus target price of $21.39, suggesting a potential upside of 29.16%. Given América Móvil’s higher probable upside, analysts clearly believe América Móvil is more favorable than Telkom SA SOC.

Summary

América Móvil beats Telkom SA SOC on 10 of the 10 factors compared between the two stocks.

About Telkom SA SOC

Telkom SA SOC Ltd provides integrated communications and information technology (IT) services to residential, business, government, wholesale, and corporate customers in South Africa, the United States, the United Kingdom, rest of Europe, and internationally. It operates through Openserve, Telkom Consumer, BCX, Gyro, and Other segments. The company offers mobile and fixed-line telecommunication services, including broadband, optical and carrier, business-to-business connectivity, interconnect-based, broadband data, voice, content, and gaming solutions; and small and medium entity information, communication, and technology services, as well as business mobility, global telecommunication, converged communication, customer premises equipment, and internet and value-added services. It also provides cloud computing, unified communications and collaboration, security, big data analytics, and mobility solutions; enterprise and applications solutions, IT managed services and infrastructure, and cloud solutions; digital and social media advertising; and e-commerce services. The company was incorporated in 1991 and is headquartered in Centurion, South Africa.

About América Móvil

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging and other wireless entertainment, and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions to small businesses and large corporations; and cable and satellite television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. The company was incorporated in 2000 and is based in Mexico City, Mexico.