SK Telecom Co. (NYSE: SKM) and Mobile TeleSystems OJSC (NYSE:MBT) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.
Earnings & Valuation
This table compares SK Telecom Co. and Mobile TeleSystems OJSC’s gross 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.
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.
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%|
Insider and Institutional Ownership
11.9% of SK Telecom Co. shares are owned by institutional investors. Comparatively, 32.1% of Mobile TeleSystems OJSC shares are owned by institutional investors. 1.0% of SK Telecom Co. shares are owned by insiders. Comparatively, 1.0% of Mobile TeleSystems OJSC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
SK Telecom Co. has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Mobile TeleSystems OJSC has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
This is a summary of current ratings 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 target price of $10.97, indicating a potential upside of 1.45%. Given Mobile TeleSystems OJSC’s stronger consensus rating and higher possible upside, analysts clearly believe Mobile TeleSystems OJSC is more favorable than SK Telecom Co..
Mobile TeleSystems OJSC beats SK Telecom Co. on 11 of the 15 factors compared between the two stocks.
SK Telecom Co. Company Profile
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.
Mobile TeleSystems OJSC Company Profile
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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