SK Telecom (NYSE: SKM) and Superconductor Technologies (NASDAQ:SCON) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

11.4% of SK Telecom shares are owned by institutional investors. Comparatively, 1.9% of Superconductor Technologies shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by company insiders. Comparatively, 1.4% of Superconductor Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares SK Telecom and Superconductor Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SK Telecom $15.38 billion 1.16 $1.51 billion $2.80 9.99
Superconductor Technologies $130,000.00 86.08 -$11.11 million ($1.34) -0.78

SK Telecom has higher revenue and earnings than Superconductor Technologies. Superconductor Technologies is trading at a lower price-to-earnings ratio than SK Telecom, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for SK Telecom and Superconductor Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SK Telecom 0 1 2 0 2.67
Superconductor Technologies 0 0 2 0 3.00

Superconductor Technologies has a consensus price target of $3.00, suggesting a potential upside of 188.46%. Given Superconductor Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Superconductor Technologies is more favorable than SK Telecom.

Dividends

SK Telecom pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Superconductor Technologies does not pay a dividend. SK Telecom pays out 25.7% of its earnings in the form of a dividend.

Profitability

This table compares SK Telecom and Superconductor Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SK Telecom 11.62% 12.56% 6.73%
Superconductor Technologies -6,897.30% -97.45% -88.94%

Volatility and Risk

SK Telecom has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Superconductor Technologies has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Summary

SK Telecom beats Superconductor Technologies on 8 of the 14 factors compared between the two stocks.

About SK Telecom

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 Superconductor Technologies

Superconductor Technologies Inc. is engaged in developing and commercializing high temperature superconductor (HTS) materials and related technologies. The Company operates through the research, development, manufacture and marketing of high performance products used in cellular base stations segment. The Company develops products for the utility and telecommunications industries. The Company offers family of products, including SuperLink, which combines a specialized filter using HTS technology with a cryogenic cooler and a low-noise amplifier; AmpLink, which provides duplexing and uplink enhancement for personal communications service (PCS) and advanced wireless services (AWS) base stations, and SuperPlex, which provides a line of multiplexing solutions to reduce the need for additional antennas and coaxial cable feed lines, while providing functionality in both the 850 megahertz (MHz) cellular band and the 1,900 MHz PCS band.

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