TIM Participacoes (NYSE: TSU) and VimpelCom (NASDAQ:VEON) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitabiliy, analyst recommendations, risk, dividends and earnings.

Earnings and Valuation

This table compares TIM Participacoes and VimpelCom’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TIM Participacoes $4.73 billion 1.46 $1.19 billion $0.47 30.32
VimpelCom $9.15 billion 0.71 $3.12 billion N/A N/A

VimpelCom has higher revenue and earnings than TIM Participacoes.

Profitability

This table compares TIM Participacoes and VimpelCom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIM Participacoes 4.32% 4.47% 2.29%
VimpelCom 23.33% -7.27% -1.34%

Analyst Ratings

This is a summary of current ratings for TIM Participacoes and VimpelCom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIM Participacoes 1 1 5 0 2.57
VimpelCom 1 1 8 0 2.70

TIM Participacoes presently has a consensus price target of $16.80, indicating a potential upside of 17.89%. VimpelCom has a consensus price target of $5.31, indicating a potential upside of 43.19%. Given VimpelCom’s stronger consensus rating and higher possible upside, analysts plainly believe VimpelCom is more favorable than TIM Participacoes.

Risk & Volatility

TIM Participacoes has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, VimpelCom has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500.

Institutional and Insider Ownership

19.3% of TIM Participacoes shares are held by institutional investors. Comparatively, 10.8% of VimpelCom shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

TIM Participacoes pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. VimpelCom pays an annual dividend of $0.17 per share and has a dividend yield of 4.6%. TIM Participacoes pays out 14.9% of its earnings in the form of a dividend. VimpelCom has raised its dividend for 4 consecutive years. VimpelCom is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

VimpelCom beats TIM Participacoes on 10 of the 14 factors compared between the two stocks.

About TIM Participacoes

TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.

About VimpelCom

VEON Ltd., formerly VimpelCom Ltd., is a provider of communications services. The Company operates as personal internet platform. It integrates powerful data analytics and artificial intelligence, with a fresh take on messaging capabilities. It enables its users and communities to connect by voice, text, picture and video through a designed interface.

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