Contrasting Vodafone Group PLC (VOD) & SK Telecom Co. (SKM)
Vodafone Group PLC (NASDAQ: VOD) and SK Telecom Co. (NYSE:SKM) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Earnings and Valuation
This table compares Vodafone Group PLC and SK Telecom Co.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vodafone Group PLC||N/A||N/A||N/A||N/A||N/A|
|SK Telecom Co.||$15.16 billion||1.03||$4.03 billion||$2.80||8.80|
SK Telecom Co. has higher revenue and earnings than Vodafone Group PLC.
Volatility & Risk
Vodafone Group PLC has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, SK Telecom Co. has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
Institutional & Insider Ownership
10.2% of Vodafone Group PLC shares are held by institutional investors. Comparatively, 11.9% of SK Telecom Co. shares are held by institutional investors. 1.0% of Vodafone Group PLC shares are held by company insiders. Comparatively, 1.0% of SK Telecom Co. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Vodafone Group PLC and SK Telecom Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vodafone Group PLC||N/A||N/A||N/A|
|SK Telecom Co.||11.62%||12.56%||6.73%|
This is a summary of recent recommendations for Vodafone Group PLC and SK Telecom Co., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vodafone Group PLC||1||4||6||1||2.58|
|SK Telecom Co.||0||3||1||0||2.25|
Vodafone Group PLC currently has a consensus target price of $31.52, suggesting a potential upside of 12.29%. Given Vodafone Group PLC’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Vodafone Group PLC is more favorable than SK Telecom Co..
Vodafone Group PLC pays an annual dividend of $1.64 per share and has a dividend yield of 5.8%. SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend.
Vodafone Group PLC beats SK Telecom Co. on 7 of the 12 factors compared between the two stocks.
About Vodafone Group PLC
Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.
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.
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