SK Telecom (NYSE:SKM – Get Free Report) and VEON (NASDAQ:VEON – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Profitability
This table compares SK Telecom and VEON’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SK Telecom | 7.49% | 9.26% | 4.18% |
| VEON | 7.62% | 20.20% | 3.83% |
Analyst Ratings
This is a breakdown of recent recommendations for SK Telecom and VEON, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SK Telecom | 2 | 3 | 1 | 1 | 2.14 |
| VEON | 0 | 1 | 5 | 0 | 2.83 |
VEON has a consensus target price of $90.33, suggesting a potential upside of 18.57%. Given VEON’s stronger consensus rating and higher probable upside, analysts plainly believe VEON is more favorable than SK Telecom.
Volatility & Risk
SK Telecom has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, VEON has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.
Institutional and Insider Ownership
21.3% of VEON shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares SK Telecom and VEON”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SK Telecom | $12.04 billion | 1.10 | $285.89 million | $2.77 | 12.41 |
| VEON | $4.40 billion | 1.28 | $532.00 million | $5.36 | 14.21 |
VEON has lower revenue, but higher earnings than SK Telecom. SK Telecom is trading at a lower price-to-earnings ratio than VEON, indicating that it is currently the more affordable of the two stocks.
Summary
VEON beats SK Telecom on 11 of the 15 factors compared between the two stocks.
About SK Telecom
SK Telecom is a South Korean telecommunications company that provides mobile voice and data services, including 5G connectivity, to consumers and businesses. Its offerings also include internet of things and enterprise connectivity solutions. Through its subsidiary SK Broadband, the company provides fixed-line broadband and IPTV services, including its B tv platform. SK Telecom is also developing artificial intelligence services and infrastructure, alongside data center and cloud-related offerings.
About VEON
VEON Ltd. is an international telecommunications and digital services company that provides mobile and fixed connectivity, along with consumer and business services. Its offerings include voice and data plans, broadband, digital payments, entertainment, and other services delivered through its networks and digital platforms. The company serves customers in Bangladesh, Kazakhstan, Kyrgyzstan, Pakistan, Ukraine, and Uzbekistan through local operating companies and brands, including Banglalink, Jazz, Kyivstar, and Beeline.
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