Millicom International Cellular SA (TIGO) vs Telefonica Brasil S.A. (VIV)

Millicom International Cellular SA and Telefonica Brasil S.A. are both Telecom Services companies. Telefonica Brasil S.A. is the larger, with a market value of $18.7B against $15.3B — 1.2× the size. Telefonica Brasil S.A. trades at the lower P/E: 23.3× against 23.3×. Millicom International Cellular SA grew revenue faster over the last twelve months: 29.6% against 16.4%. Telefonica Brasil S.A. has the higher net margin (10.6% vs 9.17%) and the lower return on invested capital (8.17% vs 10.5%). Both pay a dividend; Telefonica Brasil S.A. yields more (5.77% vs 1.68%). Across the 22 metrics below, Millicom International Cellular SA leads on 12 and Telefonica Brasil S.A. on 10.

Valuation

Metric TIGO VIV Telecom Services median
P/E 23.27 23.26 13.27
P/S 2.14 3.17 0.95
P/B 6.23 2.85 1.47
Price to free cash flow 12.59 16.61 8.72
EV/EBITDA 6.85 7.99 6.85
EV/Sales 3.23 3.36 1.87
Earnings yield 4.30% 4.30% 1.66%
Free cash flow yield 7.94% 6.02% 5.53%

Profitability

Metric TIGO VIV Telecom Services median
Gross margin 76.53% 45.03% 51.26%
Operating margin 24.02% 17.00% 7.62%
Net margin 9.17% 10.59% 4.22%
Free cash flow margin 17.03% 19.09% 4.73%
Return on equity 22.20% 9.89% 5.80%
Return on assets 3.73% 5.17% 0.00%
Return on invested capital 10.52% 8.17% 3.41%

Growth

Metric TIGO VIV Telecom Services median
Revenue growth (TTM) 29.57% 16.40% 3.31%
EPS growth (last fiscal year) 436.30% (45.52%) —
Revenue growth, 5-year CAGR 6.89% 4.99% 1.50%
Net income growth, 5-year CAGR 0.00% 3.60% 0.00%

Health

Metric TIGO VIV Telecom Services median
Debt to equity 3.51 0.30 0.63
Current ratio 0.53 0.95 1.13
Net debt to EBITDA 1.81 0.53 1.86

Dividend

Metric TIGO VIV Telecom Services median
Dividend yield 1.68% 5.77% 4.06%
Payout ratio 0.00 0.83 0.00

Size

Metric TIGO VIV Telecom Services median
Market cap 15.29b 18.68b 3.06b

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