Millicom International Cellular (NASDAQ:TIGO) & iQSTEL (NASDAQ:IQST) Critical Analysis

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

Volatility & Risk

iQSTEL has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Millicom International Cellular has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares iQSTEL and Millicom International Cellular”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iQSTEL	$316.90 million	0.03	-$9.16 million	($2.24)	-0.41
Millicom International Cellular	$5.82 billion	2.28	$1.32 billion	$3.96	19.78

Millicom International Cellular has higher revenue and earnings than iQSTEL. iQSTEL 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iQSTEL	-2.43%	-45.19%	-15.55%
Millicom International Cellular	9.19%	18.39%	3.12%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iQSTEL	1	1	0	0	1.50
Millicom International Cellular	1	2	3	1	2.57

Millicom International Cellular has a consensus price target of $85.68, indicating a potential upside of 9.37%. Given Millicom International Cellular’s stronger consensus rating and higher probable upside, analysts clearly believe Millicom International Cellular is more favorable than iQSTEL.

Summary

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

About iQSTEL

iQSTEL Inc., through its subsidiary, Etelix.com USA, LLC, provides telecom and technology solutions. It provides international long-distance voice services (ILD wholesale) for telecommunications operator; and submarine fiber optic network capacity for internet, such as 4G and 5G. The company offers voice over IP connectivity, short messages service (SMS), and international and domestic SMS termination services. It also provides infrastructure connectivity, Cloud-PBX, OmniChannel marketing, Internet of Things services, and blockchain and payment solutions. iQSTEL Inc. serves wholesale carrier, government, corporate, enterprise, and small and medium companies in North America, Latin America, and Europe. The company was formerly known as PureSnax International, Inc. and changed its name to iQSTEL Inc. in August 2018. iQSTEL Inc. was incorporated in 2011 and is based in Coral Gables, Florida.

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.