Analyzing Cellcom Israel (CEL) and Liberty Latin America (LILA)

Cellcom Israel (NYSE: CEL) and Liberty Latin America (NASDAQ:LILA) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

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This is a breakdown of recent recommendations for Cellcom Israel and Liberty Latin America, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 1 0 0 0 1.00
Liberty Latin America 2 3 1 0 1.83

Liberty Latin America has a consensus target price of $25.00, indicating a potential upside of 17.81%. Given Liberty Latin America’s stronger consensus rating and higher possible upside, analysts clearly believe Liberty Latin America is more favorable than Cellcom Israel.

Risk and Volatility

Cellcom Israel has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Profitability

This table compares Cellcom Israel and Liberty Latin America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cellcom Israel 3.08% 8.63% 1.90%
Liberty Latin America N/A N/A N/A

Insider and Institutional Ownership

10.4% of Cellcom Israel shares are held by institutional investors. Comparatively, 22.2% of Liberty Latin America shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cellcom Israel and Liberty Latin America’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cellcom Israel $1.05 billion 0.72 $39.00 million $0.32 23.38
Liberty Latin America $3.59 billion 1.01 -$796.13 million ($4.65) -4.56

Cellcom Israel has higher earnings, but lower revenue than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Cellcom Israel, indicating that it is currently the more affordable of the two stocks.

About Cellcom Israel

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

About Liberty Latin America

Liberty Latin America Ltd. provides various telecommunications services. Its services primarily include video, broadband Internet, fixed-line telephony, and mobile services. The company offers communications and entertainment services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. It also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. The company provides its services in 18 countries in Latin America and the Caribbean under the brands of C&W, BTC, Flow, Móvil, VTR, and Liberty. Liberty Latin America Ltd. was incorporated in 2017 and is based in Denver, Colorado.

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