SK Telecom Co.,Ltd (NYSE:SKM) and nVent Electric (NYSE:NVT) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Volatility and Risk
SK Telecom Co.,Ltd has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, nVent Electric has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
Earnings & Valuation
This table compares SK Telecom Co.,Ltd and nVent Electric'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 | 1.18 | $711.93 million | $1.15 | 21.25 |
nVent Electric | $2.20 billion | 2.12 | $222.70 million | $1.78 | 15.57 |
SK Telecom Co.,Ltd has higher revenue and earnings than nVent Electric. nVent Electric 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.
Insider and Institutional Ownership
8.1% of SK Telecom Co.,Ltd shares are held by institutional investors. Comparatively, 85.9% of nVent Electric shares are held by institutional investors. 1.0% of SK Telecom Co.,Ltd shares are held by company insiders. Comparatively, 1.8% of nVent Electric shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares SK Telecom Co.,Ltd and nVent Electric'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% |
nVent Electric | -2.39% | 10.35% | 5.69% |
Dividends
SK Telecom Co.,Ltd pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. nVent Electric pays an annual dividend of $0.70 per share and has a dividend yield of 2.5%. SK Telecom Co.,Ltd pays out 5.2% of its earnings in the form of a dividend. nVent Electric pays out 39.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. nVent Electric has increased its dividend for 1 consecutive years. nVent Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for SK Telecom Co.,Ltd and nVent Electric, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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SK Telecom Co.,Ltd | 0 | 0 | 1 | 0 | 3.00 |
nVent Electric | 0 | 0 | 4 | 0 | 3.00 |
nVent Electric has a consensus target price of $30.75, suggesting a potential upside of 10.93%. Given nVent Electric's higher possible upside, analysts plainly believe nVent Electric is more favorable than SK Telecom Co.,Ltd.
Summary
nVent Electric beats SK Telecom Co.,Ltd on 11 of the 16 factors compared between the two stocks.