SES (OTCMKTS:SGBAF) versus Millicom International Cellular (NASDAQ:TIGO) Head-To-Head Comparison

Millicom International Cellular (NASDAQ:TIGO) and SES (OTCMKTS:SGBAF) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Dividends

Millicom International Cellular pays an annual dividend of $3.00 per share and has a dividend yield of 3.9%. SES pays an annual dividend of $0.50 per share and has a dividend yield of 10.8%. Millicom International Cellular pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SES pays out -56.8% of its earnings in the form of a dividend. SES is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millicom International Cellular	$5.82 billion	2.25	$1.32 billion	$3.96	19.57
SES	$2.97 billion	0.87	-$107.48 million	($0.88)	-5.25

Millicom International Cellular has higher revenue and earnings than SES. SES 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 Ratings

This is a summary of recent ratings for Millicom International Cellular and SES, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millicom International Cellular	1	2	3	1	2.57
SES	1	2	1	0	2.00

Millicom International Cellular presently has a consensus price target of $85.68, indicating a potential upside of 10.54%. Given Millicom International Cellular’s stronger consensus rating and higher probable upside, analysts plainly believe Millicom International Cellular is more favorable than SES.

Risk & Volatility

Millicom International Cellular has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, SES has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Millicom International Cellular	9.19%	18.39%	3.12%
SES	-8.96%	-9.43%	-1.93%

Summary

Millicom International Cellular beats SES on 12 of the 15 factors compared between the two stocks.

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.

About SES

SES S.A. provides satellite-based data transmission capacity and ancillary services worldwide. The company offers content connectivity solutions, including network spanning satellite and ground infrastructure to create, deliver, and manage video and data solutions. It also provides data connectivity services through its fleet of geostationary earth orbit and medium earth orbit satellites to the aviation, cloud, cruise, energy, government, maritime, and telco and mobile network operator industries. In addition, the company offers video services, which includes end-to-end managed services to audience; and provides multi-screen and multi-device viewing experiences on linear channels, video-on-demand, streaming platforms, and social media sites for broadcasters, platform operators, and sports organizations. Further, it provides linear video aggregation and distribution, such as direct-to-home, direct-to-cable, and internet protocol TV households; channel management solutions comprising playout; and live feeds and redundancy features. The company was formerly known as SES Global SA and changed its name to SES S.A. in December 2006. SES S.A. was founded in 1985 and is headquartered in Betzdorf, Luxembourg.