SYNNEX (NYSE:SNX) and SK Telecom Co.,Ltd (NYSE:SKM) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.
Profitability
This table compares SYNNEX and SK Telecom Co.,Ltd's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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SYNNEX | 2.14% | 17.47% | 5.51% |
SK Telecom Co.,Ltd | 5.85% | 4.70% | 2.43% |
Earnings & Valuation
This table compares SYNNEX and SK Telecom Co.,Ltd's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SYNNEX | $24.68 billion | 0.19 | $500.71 million | $13.68 | 6.52 |
SK Telecom Co.,Ltd | $15.10 billion | 1.16 | $711.93 million | $1.15 | 20.94 |
SK Telecom Co.,Ltd has lower revenue, but higher earnings than SYNNEX. SYNNEX 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.
Dividends
SYNNEX pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. SK Telecom Co.,Ltd pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. SYNNEX pays out 5.8% of its earnings in the form of a dividend. SK Telecom Co.,Ltd pays out 9.6% 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. SYNNEX is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
75.9% of SYNNEX shares are held by institutional investors. Comparatively, 8.1% of SK Telecom Co.,Ltd shares are held by institutional investors. 2.8% of SYNNEX shares are held by insiders. Comparatively, 1.0% of SK Telecom Co.,Ltd shares are held 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.
Analyst Recommendations
This is a breakdown of recent ratings for SYNNEX and SK Telecom Co.,Ltd, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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SYNNEX | 0 | 2 | 5 | 0 | 2.71 |
SK Telecom Co.,Ltd | 0 | 0 | 2 | 0 | 3.00 |
SYNNEX currently has a consensus target price of $116.6250, indicating a potential upside of 30.80%. Given SYNNEX's higher possible upside, analysts clearly believe SYNNEX is more favorable than SK Telecom Co.,Ltd.
Risk and Volatility
SYNNEX has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, SK Telecom Co.,Ltd has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Summary
SYNNEX beats SK Telecom Co.,Ltd on 11 of the 16 factors compared between the two stocks.