Contrasting SK Telecom Co. (SKM) & Mobile TeleSystems OJSC (MBT)

SK Telecom Co. (NYSE: SKM) and Mobile TeleSystems OJSC (NYSE:MBT) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

11.9% of SK Telecom Co. shares are held by institutional investors. Comparatively, 32.1% of Mobile TeleSystems OJSC shares are held by institutional investors. 1.0% of SK Telecom Co. shares are held by insiders. Comparatively, 1.0% of Mobile TeleSystems OJSC shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. Mobile TeleSystems OJSC pays an annual dividend of $0.72 per share and has a dividend yield of 6.7%. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend. Mobile TeleSystems OJSC pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

SK Telecom Co. has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Mobile TeleSystems OJSC has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SK Telecom Co. and Mobile TeleSystems OJSC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SK Telecom Co. 0 3 1 0 2.25
Mobile TeleSystems OJSC 0 2 3 0 2.60

Mobile TeleSystems OJSC has a consensus price target of $10.97, indicating a potential upside of 1.45%. Given Mobile TeleSystems OJSC’s stronger consensus rating and higher probable upside, analysts plainly believe Mobile TeleSystems OJSC is more favorable than SK Telecom Co..

Profitability

This table compares SK Telecom Co. and Mobile TeleSystems OJSC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SK Telecom Co. 11.62% 12.56% 6.73%
Mobile TeleSystems OJSC 12.42% 40.25% 10.03%

Earnings & Valuation

This table compares SK Telecom Co. and Mobile TeleSystems OJSC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SK Telecom Co. $15.16 billion 1.09 $4.03 billion $2.80 9.25
Mobile TeleSystems OJSC $14.03 billion 0.77 $4.86 billion $0.87 12.43

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

Summary

Mobile TeleSystems OJSC beats SK Telecom Co. on 11 of the 15 factors compared between the two stocks.

About SK Telecom Co.

SK Telecom Co., Ltd. provides wireless telecommunications in Korea. The Company is engaged in the commercial development and implementation of wireless and fixed-line technologies and services, as well as develop its platforms, including Internet of things (IoT) solutions, lifestyle enhancement and advanced media. It operates through three segments: cellular services, which include wireless voice and data transmission services, sales of wireless devices, IoT solutions platform services and lifestyle enhancement platform services; fixed-line telecommunication services, which include fixed-line telephone services, broadband Internet services, advanced media platform services (including Internet Protocol television (IPTV)) and business communications services, and other businesses, which include its commerce business, its hardware business and other operations. Its brands include SK Telecom, T-Roaming, 7Mobile, B phone, 00700, B tv, Syrup, UO Smart Beam Laser, Astell&Kern and Nate.

About Mobile TeleSystems OJSC

Mobile TeleSystems Public Joint Stock Company, formerly Mobile TeleSystems Open Joint Stock Company, is a provider of telecommunications services. The Company provides mobile and fixed line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed line segment includes fixed line operations carried out in Moscow by the Company’s subsidiary MGTS. Its Ukraine segment includes mobile and fixed line operations carried out across multiple regions of Ukraine.

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