PLDT (NYSE: PHI) and Millicom International Cellular (OTCMKTS:MIICF) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
This is a summary of current ratings and target prices for PLDT and Millicom International Cellular, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Millicom International Cellular||0||0||0||0||N/A|
Risk & Volatility
PLDT has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Millicom International Cellular has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.
Earnings & Valuation
This table compares PLDT and Millicom International Cellular’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PLDT||$3.17 billion||1.97||$264.74 million||$2.43||11.87|
|Millicom International Cellular||$6.02 billion||1.17||$85.00 million||$0.85||81.40|
PLDT has higher earnings, but lower revenue than Millicom International Cellular. PLDT 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 PLDT and Millicom International Cellular’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Millicom International Cellular||1.81%||3.20%||1.07%|
PLDT pays an annual dividend of $1.23 per share and has a dividend yield of 4.3%. Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 3.8%. PLDT pays out 50.6% of its earnings in the form of a dividend. Millicom International Cellular pays out 310.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PLDT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
8.9% of PLDT shares are held by institutional investors. Comparatively, 1.7% of Millicom International Cellular shares are held by institutional investors. 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.
PLDT beats Millicom International Cellular on 10 of the 13 factors compared between the two stocks.
PLDT, Inc., formerly Philippine Long Distance Telephone Company (PLDT), is a telecommunications service provider in the Philippines. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines’ fiber optic backbone and wireless and fixed line networks. The Company’s wireless segment provides cellular, wireless broadband and other services, and digital platforms and mobile financial services. Its Fixed Line segment provides local exchange, international long distance, national long distance, data and other network and miscellaneous services under its fixed line business. It offers postpaid and prepaid fixed line services. Its Other business consists of PLDT Communications and Energy Ventures, Inc. (PCEV), an investment holding company. It also focuses on providing wireless voice communications and wireless data communications.
About Millicom International Cellular
Millicom International Cellular S.A. is an international telecommunications and media company. The Company is engaged in providing digital lifestyle services in various markets, through mobile and fixed telephony, cable, broadband and television. Its segments include Latin America and Africa. It operates its mobile businesses in Central America (El Salvador) and in Africa (Chad, Ghana, Rwanda, Senegal and Tanzania). It operates various cable and fixed line businesses in Latin America (Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Bolivia and Paraguay). It provides fixed and mobile communications services, cable and satellite television, Mobile Financial Services (MFS) and local content, such as music and sports, to customers through its consumer brand TIGO. At Tigo Business, it delivers digital solutions for governments, multinationals, large corporations, and small and medium sized businesses. It operates in over 10 countries across Latin America and Africa.
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