Meru Networks (NASDAQ: MERU) and America Movil, S.A.B. de C.V. (NYSE:AMX) are both telecommunications services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
This table compares Meru Networks and America Movil, S.A.B. de C.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|America Movil, S.A.B. de C.V.||4.49%||18.47%||3.26%|
America Movil, S.A.B. de C.V. pays an annual dividend of $0.30 per share and has a dividend yield of 1.6%. Meru Networks does not pay a dividend. America Movil, S.A.B. de C.V. pays out 42.9% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Meru Networks and America Movil, S.A.B. de C.V.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|America Movil, S.A.B. de C.V.||$58.22 billion||1.04||$14.79 billion||$0.70||26.20|
America Movil, S.A.B. de C.V. has higher revenue and earnings than Meru Networks.
This is a summary of current recommendations and price targets for Meru Networks and America Movil, S.A.B. de C.V., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|America Movil, S.A.B. de C.V.||2||2||4||0||2.25|
America Movil, S.A.B. de C.V. has a consensus target price of $16.31, indicating a potential downside of 11.06%. Given America Movil, S.A.B. de C.V.’s higher probable upside, analysts clearly believe America Movil, S.A.B. de C.V. is more favorable than Meru Networks.
Institutional & Insider Ownership
7.6% of America Movil, S.A.B. de C.V. shares are owned by institutional investors. 1.0% of America Movil, S.A.B. de C.V. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
America Movil, S.A.B. de C.V. beats Meru Networks on 9 of the 10 factors compared between the two stocks.
Meru Networks Company Profile
Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.
America Movil, S.A.B. de C.V. Company Profile
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.
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