Comparing Millicom International Cellular (NASDAQ:TIGO) and Telecom Italia (OTCMKTS:TIAIY)

Millicom International Cellular (NASDAQ:TIGO) and Telecom Italia (OTCMKTS:TIAIY) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Earnings & Valuation

This table compares Millicom International Cellular and Telecom Italia”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millicom International Cellular	$5.80 billion	1.18	$253.00 million	$2.08	19.21
Telecom Italia	$15.88 billion	N/A	-$660.08 million	N/A	N/A

Millicom International Cellular has higher earnings, but lower revenue than Telecom Italia.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Millicom International Cellular and Telecom Italia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millicom International Cellular	0	3	3	1	2.71
Telecom Italia	0	0	0	0	0.00

Millicom International Cellular presently has a consensus target price of $38.08, indicating a potential downside of 4.67%. Given Millicom International Cellular’s stronger consensus rating and higher probable upside, research analysts clearly believe Millicom International Cellular is more favorable than Telecom Italia.

Profitability

This table compares Millicom International Cellular and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Millicom International Cellular	6.20%	10.02%	2.57%
Telecom Italia	N/A	N/A	N/A

Risk & Volatility

Millicom International Cellular has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

Millicom International Cellular beats Telecom Italia on 8 of the 10 factors compared between the two stocks.

About Millicom International Cellular

Millicom International Cellular S.A. provides cable and mobile services in Latin America. It offers mobile services, including mobile data and voice, and short message services; and mobile financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance. The company also operates TIGO Sports for local entertainment; Tigo Money that allows its customers to send and receive money without the need for a bank account; and TIGO ONEtv for pay TV. In addition, it provides fixed services, including broadband and fixed voice; and fixed-voice and data telecommunications services, managed services, cloud and security solutions, and value-added services; and tower infrastructure and services. The company serves small, medium, and large businesses, as well as residential consumers and governmental entities. It markets its products and services under the Tigo and Tigo Business brands. The company was founded in 1990 and is headquartered in Luxembourg.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.