Head to Head Contrast: Vodafone Group (VOD) and Millicom International Cellular (TIGO)

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

Analyst Ratings

This is a summary of current ratings and price targets for Vodafone Group and Millicom International Cellular, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vodafone Group 1 4 10 1 2.69
Millicom International Cellular 0 0 1 0 3.00

Vodafone Group presently has a consensus target price of $26.50, indicating a potential upside of 43.55%. Given Vodafone Group’s higher probable upside, analysts clearly believe Vodafone Group is more favorable than Millicom International Cellular.

Profitability

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

Net Margins Return on Equity Return on Assets
Vodafone Group N/A N/A N/A
Millicom International Cellular -0.25% -0.24% -0.07%

Dividends

Vodafone Group pays an annual dividend of $1.07 per share and has a dividend yield of 5.8%. Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 4.6%. Vodafone Group pays out 78.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Vodafone Group has raised its dividend for 2 consecutive years. Vodafone Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Vodafone Group has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Millicom International Cellular has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Institutional & Insider Ownership

8.3% of Vodafone Group shares are held by institutional investors. Comparatively, 1.8% of Millicom International Cellular shares are held by institutional investors. 1.0% of Vodafone Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Vodafone Group and Millicom International Cellular’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vodafone Group $54.48 billion 0.90 $3.24 billion $1.36 13.57
Millicom International Cellular $4.07 billion 1.43 -$10.00 million $0.29 199.14

Vodafone Group has higher revenue and earnings than Millicom International Cellular. Vodafone Group 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.

Summary

Vodafone Group beats Millicom International Cellular on 14 of the 17 factors compared between the two stocks.

Vodafone Group Company Profile

Vodafone Group Plc engages in telecommunication services in Europe, Africa, the Middle East, and the Asia Pacific. The company's consumer products include mobile services, such as call, text, and data; broadband; television offerings and voice; mobile money services through M-pesa; Giga TV, an advanced digital service; and converged communication solutions, such as GigaKombi, Vodafone One Net Enterprise, Vodafone One, and Vodafone Meet Anywhere. It also offers Internet of Things connections to communicate securely with network; and cloud and security services for public and private cloud, as well as cloud based applications and products for securing networks and devices. In addition, the company offers carrier services, such as international voice, IP transit, and messaging. Further, it provides renting of mobile virtual network services. The company has a strategic partnership with Arm Limited to improve the deployment of Internet of Things. Vodafone Group Plc serves approximately 536 million mobile customers and 20 million fixed broadband customers. The company was founded in 1984 and is based in Newbury, the United Kingdom.

Millicom International Cellular Company Profile

Millicom International Cellular S.A. provides cable and mobile services in Latin America and Africa. The company offers mobile services, including mobile data and voice; short message service; and mobile financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance. It also fixed services, including broadband, fixed voice, and pay-TV to residential consumers; and mobile, fixed, and value-added services to large, small, and medium businesses, as well as governmental entities As of December 31, 2018, the company served 48.3 million business-to-consumer mobile customers; and 4.1 million connected homes. It markets its products and services under Tigo and Tigo Business brands. Millicom International Cellular S.A. was founded in 1990 and is headquartered in Luxembourg City, Luxembourg.

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