Analyzing TIM (NYSE:TIMB) and SK Telecom (NYSE:SKM)

TIM (NYSE:TIMBGet Free Report) and SK Telecom (NYSE:SKMGet Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Valuation & Earnings

This table compares TIM and SK Telecom”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TIM $26.34 billion 0.43 $584.73 million $1.46 16.04
SK Telecom $17,836.12 billion 0.00 $875.11 million $0.67 30.38

SK Telecom has higher revenue and earnings than TIM. TIM is trading at a lower price-to-earnings ratio than SK Telecom, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TIM and SK Telecom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TIM 0 5 3 2 2.70
SK Telecom 1 4 1 0 2.00

TIM presently has a consensus target price of $23.10, indicating a potential downside of 1.37%. Given TIM’s stronger consensus rating and higher possible upside, analysts plainly believe TIM is more favorable than SK Telecom.

Risk & Volatility

TIM has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, SK Telecom has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Profitability

This table compares TIM and SK Telecom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TIM 13.91% 13.99% 6.37%
SK Telecom 5.92% 8.92% 3.61%

Dividends

TIM pays an annual dividend of $0.95 per share and has a dividend yield of 4.1%. SK Telecom pays an annual dividend of $1.05 per share and has a dividend yield of 5.2%. TIM pays out 65.1% of its earnings in the form of a dividend. SK Telecom pays out 156.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TIM beats SK Telecom on 12 of the 15 factors compared between the two stocks.

About TIM

(Get Free Report)

TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.

About SK Telecom

(Get Free Report)

SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. The company operates through three segments: Cellular Services, Fixed-Line Telecommunications Services, and Other Businesses. The Cellular Services segment offers wireless voice and data transmission, Internet of Things solutions, platform, cloud, smart factory solutions, subscription, advertising and curated shopping under T Deal brand name, and metaverse platform-based services, as well as sells wireless devices. The Fixed-Line Telecommunications Services segment provides fixed-line telephone services; broadband Internet services; media platform services, such as Internet protocol TV and cable TV; and business communications services. The Other Businesses segment offers T-commerce services, as well as portal services under Nate brand name. In addition, it provides call center management, base station maintenance, information gathering and consulting, database and internet website, cable broadcasting, broadcasting programs, and digital contents sourcing services; manufactures non-memory and other electronic integrated circuits; international telecommunication and mobile; and operates information and communications facilities, and mobile virtual network, as well as engages in communications and communication device retail business. SK Telecom Co., Ltd. was incorporated in 1984 and is headquartered in Seoul, South Korea.

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