Contrasting VEON (NASDAQ:VEON) & Kyivstar Group (NASDAQ:KYIV)

Kyivstar Group (NASDAQ:KYIV) and VEON (NASDAQ:VEON) are both mid-cap communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Profitability

This table compares Kyivstar Group and VEON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kyivstar Group	12.73%	24.71%	15.12%
VEON	1.24%	14.93%	2.78%

Valuation and Earnings

This table compares Kyivstar Group and VEON”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kyivstar Group	$1.16 billion	2.68	$124.00 million	$0.66	20.33
VEON	$4.40 billion	0.94	$532.00 million	$0.85	65.72

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kyivstar Group and VEON, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kyivstar Group	0	2	3	0	2.60
VEON	0	2	3	0	2.60

Kyivstar Group presently has a consensus target price of $16.62, indicating a potential upside of 23.88%. VEON has a consensus target price of $72.00, indicating a potential upside of 28.89%. Given VEON’s higher possible upside, analysts clearly believe VEON is more favorable than Kyivstar Group.

Institutional and Insider Ownership

21.3% of VEON shares are held by institutional investors. 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.

Summary

VEON beats Kyivstar Group on 6 of the 10 factors compared between the two stocks.

About Kyivstar Group

Kyivstar Group Ltd. provides a range of mobile communication and home Internet services in Ukraine. It offers mobile services, such as voice, messaging and data, mobile and computer Internet, roaming, abroad calling, payment, and other services; fixed telephone communication services; fixed Internet and data transfer services; and mobile virtual PBX services, as well as operates data centers, commercial contact centers, and M2M contact centers. The company also provides loyalty programs, as well as sells telecommunications equipment. The company was founded in 1994 and is based in Dubai, the United Arab Emirates. Kyivstar Group Ltd. operates as a subsidiary of Vimpelcom Amsterdam B.V.

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.