SK Telecom Co.,Ltd (NYSE:SKM) and VEON (NASDAQ:VEON) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Volatility and Risk
SK Telecom Co.,Ltd has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, VEON has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for SK Telecom Co.,Ltd and VEON, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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SK Telecom Co.,Ltd | 0 | 0 | 2 | 0 | 3.00 |
VEON | 1 | 4 | 2 | 0 | 2.14 |
VEON has a consensus price target of $1.90, suggesting a potential upside of 6.74%. Given VEON's higher possible upside, analysts plainly believe VEON is more favorable than SK Telecom Co.,Ltd.
Insider & Institutional Ownership
8.1% of SK Telecom Co.,Ltd shares are held by institutional investors. Comparatively, 15.7% of VEON shares are held by institutional investors. 1.0% of SK Telecom Co.,Ltd shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares SK Telecom Co.,Ltd and VEON's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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SK Telecom Co.,Ltd | $15.10 billion | 1.16 | $711.93 million | $1.15 | 20.94 |
VEON | $8.86 billion | 0.35 | $621 million | $0.36 | 4.94 |
SK Telecom Co.,Ltd has higher revenue and earnings than VEON. VEON is trading at a lower price-to-earnings ratio than SK Telecom Co.,Ltd, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SK Telecom Co.,Ltd and VEON's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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SK Telecom Co.,Ltd | 5.85% | 4.70% | 2.43% |
VEON | -4.05% | -21.39% | -2.29% |
Summary
SK Telecom Co.,Ltd beats VEON on 10 of the 13 factors compared between the two stocks.