Head-To-Head Analysis: SK Telecom (NYSE:SKM) versus VEON (NASDAQ:VEON)

SK Telecom (NYSE:SKM) and VEON (NASDAQ:VEON) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

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%

Insider and Institutional Ownership

21.3% of VEON shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by company 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.

Earnings and Valuation

This table compares SK Telecom and VEON”s top-line revenue, earnings per share (EPS) 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for SK Telecom and VEON, as reported 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 price target of $90.33, suggesting a potential upside of 18.57%. Given VEON’s stronger consensus rating and higher possible upside, analysts clearly believe VEON is more favorable than SK Telecom.

Risk & Volatility

SK Telecom has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, VEON has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

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.