Critical Comparison: FingerMotion (NASDAQ:FNGR) versus VEON (NASDAQ:VEON)

VEON (NASDAQ:VEON) and FingerMotion (NASDAQ:FNGR) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Risk and Volatility

VEON has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, FingerMotion has a beta of -0.33, meaning that its share price is 133% less volatile than the S&P 500.

Valuation & Earnings

This table compares VEON and FingerMotion”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VEON	$4.40 billion	1.30	$532.00 million	$0.85	90.81
FingerMotion	$24.13 million	0.61	-$7.00 million	($0.12)	-1.69

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

Institutional and Insider Ownership

21.3% of VEON shares are held by institutional investors. Comparatively, 3.9% of FingerMotion shares are held by institutional investors. 18.8% of FingerMotion shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VEON	1.24%	14.93%	2.78%
FingerMotion	-42.81%	-46.67%	-11.91%

Analyst Ratings

This is a breakdown of current ratings and target prices for VEON and FingerMotion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	2	4	0	2.67
FingerMotion	1	0	0	0	1.00

VEON presently has a consensus price target of $90.33, suggesting a potential upside of 17.03%. Given VEON’s stronger consensus rating and higher possible upside, research analysts clearly believe VEON is more favorable than FingerMotion.

Summary

VEON beats FingerMotion on 13 of the 14 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 FingerMotion

FingerMotion, Inc., a mobile data specialist company, provides mobile payment and recharge platform system in China. The company offers telecommunication products and services, including data plans, subscription plans, mobile phones, and loyalty points redemption services; bulk short message service and multimedia messaging services; and Rich Communication Services (RCS) platform, a proprietary business messaging platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure. It also operates Sapientus, a proprietary big data insights platform that deliver data-driven for businesses in the insurance, healthcare, and financial services industries. In addition, the company offers value added product and services. FingerMotion, Inc. is headquartered in Singapore.