Financial Contrast: uCloudlink Group (NASDAQ:UCL) & VEON (NASDAQ:VEON)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
uCloudlink Group	$81.45 million	0.33	$6.30 million	$0.09	7.96
VEON	$4.76 billion	0.89	$532.00 million	$0.85	67.18

VEON has higher revenue and earnings than uCloudlink Group. uCloudlink 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 summary of current ratings and price targets for uCloudlink Group and VEON, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
uCloudlink Group	1	0	0	0	1.00
VEON	0	2	3	0	2.60

VEON has a consensus price target of $72.00, suggesting a potential upside of 26.09%. Given VEON’s stronger consensus rating and higher probable upside, analysts plainly believe VEON is more favorable than uCloudlink Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
uCloudlink Group	4.30%	12.59%	5.15%
VEON	1.24%	14.93%	2.78%

Risk and Volatility

uCloudlink Group has a beta of 4.2, suggesting that its share price is 320% more volatile than the S&P 500. Comparatively, VEON has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.

Insider and Institutional Ownership

85.5% of uCloudlink Group shares are owned by institutional investors. Comparatively, 21.3% of VEON shares are owned by institutional investors. 54.6% of uCloudlink Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

VEON beats uCloudlink Group on 9 of the 14 factors compared between the two stocks.

About uCloudlink Group

uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.

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.