Reviewing America Movil (AMX) and RR Media (RRM)

America Movil (NYSE: AMX) and RR Media (NASDAQ:RRM) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Dividends

America Movil pays an annual dividend of $0.17 per share and has a dividend yield of 1.0%. RR Media pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. America Movil pays out 24.3% of its earnings in the form of a dividend. RR Media pays out 60.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current recommendations for America Movil and RR Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America Movil 2 0 4 0 2.33
RR Media 0 0 0 0 N/A

America Movil presently has a consensus price target of $17.50, indicating a potential upside of 3.43%. Given America Movil’s higher possible upside, research analysts plainly believe America Movil is more favorable than RR Media.

Profitability

This table compares America Movil and RR Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America Movil 4.49% 18.47% 3.26%
RR Media 3.49% 5.83% 3.07%

Institutional and Insider Ownership

7.5% of America Movil shares are owned by institutional investors. 1.0% of America Movil shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares America Movil and RR Media’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
America Movil $52.35 billion 1.07 $417.00 million $0.70 24.17
RR Media N/A N/A N/A $0.46 28.37

America Movil has higher revenue and earnings than RR Media. America Movil is trading at a lower price-to-earnings ratio than RR Media, indicating that it is currently the more affordable of the two stocks.

Summary

America Movil beats RR Media on 10 of the 11 factors compared between the two stocks.

America Movil Company Profile

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

RR Media Company Profile

MX1 Ltd, formerly RR Media Ltd, is an Israel-based global media services provider. It is a media globalize company that works with media businesses to transform content into a viewer experience for a global audience. MX1 Ltd offers a range of content management, delivery and digital media services. It distributes more than 1000 television (TV) channels, manages the play out of more than 400 channels and delivers syndicated content to more than 120 subscription Video on Demand (VOD) platforms. The Company has offices worldwide and operates global media centers, enabling customers to reach people around the world. MX1 Ltd is a wholly-owned subsidiary of SES, Euronext Paris and Luxembourg Stock Exchange: SESG.

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