SK Telecom Co. (SKM) versus China Unicom (Hong Kong) (CHU) Critical Contrast
China Unicom (Hong Kong) (NYSE: CHU) and SK Telecom Co. (NYSE:SKM) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Volatility and Risk
China Unicom (Hong Kong) has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, SK Telecom Co. has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.
This table compares China Unicom (Hong Kong) and SK Telecom Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Unicom (Hong Kong)||N/A||N/A||N/A|
|SK Telecom Co.||11.62%||12.56%||6.73%|
This is a breakdown of current recommendations and price targets for China Unicom (Hong Kong) and SK Telecom Co., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Unicom (Hong Kong)||4||1||4||0||2.00|
|SK Telecom Co.||0||3||1||0||2.25|
SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. China Unicom (Hong Kong) does not pay a dividend. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares China Unicom (Hong Kong) and SK Telecom Co.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Unicom (Hong Kong)||$41.66 billion||0.81||$12.02 billion||N/A||N/A|
|SK Telecom Co.||$15.16 billion||1.03||$4.03 billion||$2.80||8.78|
China Unicom (Hong Kong) has higher revenue and earnings than SK Telecom Co..
Institutional and Insider Ownership
1.2% of China Unicom (Hong Kong) shares are held by institutional investors. Comparatively, 11.9% of SK Telecom Co. shares are held by institutional investors. 77.5% of China Unicom (Hong Kong) shares are held by insiders. Comparatively, 1.0% of SK Telecom Co. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
SK Telecom Co. beats China Unicom (Hong Kong) on 7 of the 13 factors compared between the two stocks.
China Unicom (Hong Kong) Company Profile
China Unicom (Hong Kong) Limited is a Hong Kong-based investment holding company principally engaged in the provision of telecommunications services. The Company’s businesses include mobile businesses, fixed-line businesses and others. Its mobile businesses include the provision of call services, roaming services, mobile broadband services, traditional value-added services such as short message services, multimedia message services and wireless Internet access card, as well as new value-added services such as mobile music, mobile television and Wo portal services. Its fixed-line businesses include broadband and Internet networks businesses, among others. The Company’s subsidiaries include CUCL, China Unicom Global Limited and China Unicom (Europe) Operations Limited.
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.
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