VEON (NASDAQ:VEON) versus Telenor ASA (OTCMKTS:TELNY) Head-To-Head Comparison

VEON (NASDAQ:VEON) and Telenor ASA (OTCMKTS:TELNY) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

21.3% of VEON shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares VEON and Telenor ASA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VEON	$4.15 billion	0.90	$415.00 million	$13.64	3.70
Telenor ASA	$7.44 billion	3.01	$1.71 billion	$0.74	22.08

Telenor ASA has higher revenue and earnings than VEON. VEON is trading at a lower price-to-earnings ratio than Telenor ASA, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares VEON and Telenor ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VEON	23.75%	72.76%	12.22%
Telenor ASA	13.67%	14.56%	5.03%

Volatility & Risk

VEON has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Telenor ASA has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for VEON and Telenor ASA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	2	1	1	2.75
Telenor ASA	1	5	0	0	1.83

VEON currently has a consensus price target of $60.00, indicating a potential upside of 18.79%. Given VEON’s stronger consensus rating and higher possible upside, research analysts plainly believe VEON is more favorable than Telenor ASA.

Dividends

VEON pays an annual dividend of $0.23 per share and has a dividend yield of 0.5%. Telenor ASA pays an annual dividend of $0.54 per share and has a dividend yield of 3.3%. VEON pays out 1.7% of its earnings in the form of a dividend. Telenor ASA pays out 73.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

VEON beats Telenor ASA on 11 of the 16 factors compared between the two stocks.

About VEON

VEON Ltd., a digital operator, provides connectivity and internet services in Pakistan, Ukraine, Kazakhstan, Bangladesh, Uzbekistan, and Kyrgyzstan. It offers mobile telecommunications services, including value added and call completion, national and international roaming, wireless Internet access, mobile financial, and mobile bundle services; data connectivity, cross border transit, voice, Internet, and data services; fixed-line telecommunications using intercity fiber optic networks; and Internet-TV using Fiber to the building technology. The company also sells equipment, infrastructure, and accessories. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.