Telefonica SA (TELFY) vs Millicom International Cellular SA (TIGO)

Telefonica SA and Millicom International Cellular SA are both Telecom Services companies. Telefonica SA is the larger, with a market value of $21.5B against $15.3B — 1.4× the size. Telefonica SA has negative trailing earnings, so its P/E is not meaningful; Millicom International Cellular SA trades at 23.3×. Millicom International Cellular SA grew revenue faster over the last twelve months: 29.6% against −6.91%. Millicom International Cellular SA has the higher net margin (9.17% vs −10.6%) and the higher return on invested capital (10.5% vs 1.78%). Both pay a dividend; Telefonica SA yields more (8.46% vs 1.68%). Across the 21 metrics below, Millicom International Cellular SA leads on 13 and Telefonica SA on 8.

Valuation

Metric TELFY TIGO Telecom Services median
P/E n/m 23.27 13.27
P/S 0.55 2.14 0.95
P/B 1.02 6.23 1.47
Price to free cash flow 12.19 12.59 8.72
EV/EBITDA 35.36 6.85 6.85
EV/Sales 1.34 3.23 1.87
Earnings yield (18.86%) 4.30% 1.66%
Free cash flow yield 8.20% 7.94% 5.53%

Profitability

Metric TELFY TIGO Telecom Services median
Gross margin 66.84% 76.53% 51.26%
Operating margin 3.78% 24.02% 7.62%
Net margin (10.56%) 9.17% 4.22%
Free cash flow margin 4.54% 17.03% 4.73%
Return on equity (17.31%) 22.20% 5.80%
Return on assets (3.95%) 3.73% 0.00%
Return on invested capital 1.78% 10.52% 3.41%

Growth

Metric TELFY TIGO Telecom Services median
Revenue growth (TTM) (6.91%) 29.57% 3.31%
EPS growth (last fiscal year) (1,433.33%) 436.30% —
Revenue growth, 5-year CAGR (4.19%) 6.89% 1.50%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TELFY TIGO Telecom Services median
Debt to equity 1.84 3.51 0.63
Current ratio 0.92 0.53 1.13
Net debt to EBITDA 20.40 1.81 1.86

Dividend

Metric TELFY TIGO Telecom Services median
Dividend yield 8.46% 1.68% 4.06%
Payout ratio 1.15 0.00 0.00

Size

Metric TELFY TIGO Telecom Services median
Market cap 21.48b 15.29b 3.06b

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