Liberty Latin America (NASDAQ:LILA – Get Free Report) and Millicom International Cellular (NASDAQ:TIGO – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.
Profitability
This table compares Liberty Latin America and Millicom International Cellular’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Liberty Latin America | -2.20% | -9.29% | -0.81% |
| Millicom International Cellular | 9.19% | 18.39% | 3.12% |
Insider and Institutional Ownership
18.5% of Liberty Latin America shares are owned by institutional investors. 6.2% of Liberty Latin America shares are owned by insiders. Comparatively, 0.5% of Millicom International Cellular shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Latin America | $4.44 billion | 0.38 | -$611.20 million | ($0.49) | -17.59 |
| Millicom International Cellular | $5.82 billion | 2.79 | $1.32 billion | $3.96 | 24.26 |
Millicom International Cellular has higher revenue and earnings than Liberty Latin America. Liberty Latin America 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.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Liberty Latin America and Millicom International Cellular, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Liberty Latin America | 2 | 1 | 1 | 0 | 1.75 |
| Millicom International Cellular | 1 | 3 | 3 | 0 | 2.29 |
Liberty Latin America currently has a consensus price target of $10.00, indicating a potential upside of 16.01%. Millicom International Cellular has a consensus price target of $85.68, indicating a potential downside of 10.83%. Given Liberty Latin America’s higher possible upside, analysts plainly believe Liberty Latin America is more favorable than Millicom International Cellular.
Volatility and Risk
Liberty Latin America has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Millicom International Cellular has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Summary
Millicom International Cellular beats Liberty Latin America on 11 of the 14 factors compared between the two stocks.
About Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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.
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