Comparing TIM Participacoes (TSU) and America Movil SAB de CV (NYSE:AMOV)

America Movil SAB de CV (NYSE: AMOV) and TIM Participacoes (NYSE:TSU) are both mid-cap telecommunications services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Volatility and Risk

America Movil SAB de CV has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, TIM Participacoes has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Insider and Institutional Ownership

15.5% of TIM Participacoes shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares America Movil SAB de CV and TIM Participacoes’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
America Movil SAB de CV N/A N/A N/A $0.55 31.07
TIM Participacoes $4.50 billion 2.15 $215.14 million $0.63 31.68

TIM Participacoes has higher revenue and earnings than America Movil SAB de CV. America Movil SAB de CV is trading at a lower price-to-earnings ratio than TIM Participacoes, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares America Movil SAB de CV and TIM Participacoes’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America Movil SAB de CV -3.37% -21.11% -2.41%
TIM Participacoes 5.57% 5.71% 3.02%

Dividends

TIM Participacoes pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. America Movil SAB de CV does not pay a dividend. TIM Participacoes pays out 25.4% of its earnings in the form of a dividend. TIM Participacoes has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for America Movil SAB de CV and TIM Participacoes, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America Movil SAB de CV 0 1 0 0 2.00
TIM Participacoes 0 1 6 0 2.86

TIM Participacoes has a consensus target price of $19.50, suggesting a potential downside of 2.30%. Given TIM Participacoes’ stronger consensus rating and higher probable upside, analysts plainly believe TIM Participacoes is more favorable than America Movil SAB de CV.

Summary

TIM Participacoes beats America Movil SAB de CV on 13 of the 14 factors compared between the two stocks.

About America Movil SAB de CV

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

About TIM Participacoes

TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.

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