Reviewing uCloudlink Group (NASDAQ:UCL) & VEON (NASDAQ:VEON)

VEON (NASDAQ:VEONGet Free Report) and uCloudlink Group (NASDAQ:UCLGet Free Report) are both communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Profitability

This table compares VEON and uCloudlink Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VEON 1.24% 15.37% 2.86%
uCloudlink Group 4.30% 12.59% 5.15%

Insider & Institutional Ownership

21.3% of VEON shares are held by institutional investors. Comparatively, 85.5% of uCloudlink Group shares are held by institutional investors. 54.6% of uCloudlink Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

VEON has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, uCloudlink Group has a beta of 4.15, suggesting that its share price is 315% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for VEON and uCloudlink Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VEON 1 1 3 0 2.40
uCloudlink Group 1 0 0 0 1.00

VEON currently has a consensus price target of $72.00, suggesting a potential upside of 35.26%. Given VEON’s stronger consensus rating and higher probable upside, equities research analysts plainly believe VEON is more favorable than uCloudlink Group.

Earnings & Valuation

This table compares VEON and uCloudlink Group”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VEON $4.40 billion 0.90 $532.00 million $0.85 62.62
uCloudlink Group $79.56 million 0.43 $6.30 million $0.09 10.04

VEON has higher revenue and earnings than uCloudlink Group. uCloudlink Group 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 uCloudlink Group on 9 of the 14 factors compared between the two stocks.

About VEON

(Get Free Report)

VEON Ltd., a digital operator, provides connectivity and internet services in Pakistan, Ukraine, Kazakhstan, Bangladesh, Uzbekistan, and Kyrgyzstan. It offers mobile telecommunications services, including value added and call completion, national and international roaming, wireless Internet access, mobile financial, and mobile bundle services; data connectivity, cross border transit, voice, Internet, and data services; fixed-line telecommunications using intercity fiber optic networks; and Internet-TV using Fiber to the building technology. The company also sells equipment, infrastructure, and accessories. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.

About uCloudlink Group

(Get Free Report)

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.

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