Tele2 (OTCMKTS:TLTZY – Get Free Report) and MTN Group (OTCMKTS:MTNOY – Get Free Report) are both large-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Profitability
This table compares Tele2 and MTN Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tele2 | 33.96% | 43.42% | 15.54% |
| MTN Group | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Tele2 and MTN Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tele2 | 0 | 3 | 3 | 1 | 2.71 |
| MTN Group | 1 | 0 | 1 | 0 | 2.00 |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tele2 | $3.06 billion | 3.89 | $468.79 million | $0.78 | 11.10 |
| MTN Group | $12.69 billion | 1.83 | $1.13 billion | N/A | N/A |
MTN Group has higher revenue and earnings than Tele2.
Risk & Volatility
Tele2 has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, MTN Group has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Dividends
Tele2 pays an annual dividend of $0.28 per share and has a dividend yield of 3.2%. MTN Group pays an annual dividend of $0.22 per share and has a dividend yield of 1.7%. Tele2 pays out 35.9% of its earnings in the form of a dividend.
Summary
Tele2 beats MTN Group on 8 of the 12 factors compared between the two stocks.
About Tele2
Tele2 AB (publ) provides fixed and mobile connectivity, handset related data services, and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. The company also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, it offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. The company was incorporated in 1990 and is headquartered in Kista, Sweden.
About MTN Group
MTN Group Limited, together with its subsidiaries, provides mobile telecommunications services in South Africa, Nigeria, East Africa, West and Central Africa, and the Middle East and North Africa. The company offers data, voice and SMS, digital and fintech, interconnect, and roaming services, as well as sells mobile devices. It also provides network as a service, including subsea cables that offers international connectivity services; terrestrial and metro fiber networks; data centers and cable landing stations; and FTTx, towers, and radio access networks. The company also offers digital financial services, such as access payments, e-commerce, insurance, and lending and remittance services; enterprise services comprising manage networks, unified and cloud communication, security as a service, and Internet of Things; and API products and services for telecommunications, health, government, financial services, entertainment, and other sectors. MTN Group Limited was incorporated in 1994 and is based in Johannesburg, South Africa.
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