Telesat (NASDAQ:TSAT) and Millicom International Cellular (NASDAQ:TIGO) Critical Review

Millicom International Cellular (NASDAQ:TIGO) and Telesat (NASDAQ:TSAT) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Volatility and Risk

Millicom International Cellular has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Telesat has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.

Profitability

This table compares Millicom International Cellular and Telesat’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%
Telesat	-102.62%	-15.53%	-3.95%

Earnings & Valuation

This table compares Millicom International Cellular and Telesat”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millicom International Cellular	$7.25 billion	1.87	$1.32 billion	$3.96	20.29
Telesat	$299.12 million	2.25	-$111.19 million	($17.89)	-2.47

Millicom International Cellular has higher revenue and earnings than Telesat. Telesat 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 breakdown of current ratings and target prices for Millicom International Cellular and Telesat, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millicom International Cellular	1	2	3	1	2.57
Telesat	3	2	2	0	1.86

Millicom International Cellular presently has a consensus price target of $85.68, indicating a potential upside of 6.65%. Telesat has a consensus price target of $33.50, indicating a potential downside of 24.26%. Given Millicom International Cellular’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Millicom International Cellular is more favorable than Telesat.

Summary

Millicom International Cellular beats Telesat on 11 of the 13 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 Telesat

Telesat Corporation, a satellite operator, provides mission-critical communications solutions to broadcast, enterprise, and consulting customers worldwide. The company’s satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers’ homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services that include satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services comprising space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; rural telephony to telecommunications carriers and network services integrators; and other satellite services. In addition, it offers direct-to-consumer broadband services; communications services for the oil and gas and mining industries; and broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels. Further, the company operates satellite and hybrid satellite/terrestrial networks. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, research and development, and satellite control services. The company offers its services primarily through a direct sales force. As of December 31, 2020, it operated a fleet of 15 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada. Telesat Corporation is a subsidiary of Loral Space & Communications Inc.