SK Telecom (NYSE:SKM) vs. Freenet (OTCMKTS:FRTAF) Head-To-Head Analysis

Freenet (OTCMKTS:FRTAF) and SK Telecom (NYSE:SKM) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Freenet and SK Telecom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freenet	0	2	1	1	2.75
SK Telecom	2	3	1	1	2.14

Volatility & Risk

Freenet has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, SK Telecom has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Freenet and SK Telecom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freenet	10.04%	17.88%	7.85%
SK Telecom	4.23%	5.59%	2.39%

Earnings and Valuation

This table compares Freenet and SK Telecom”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freenet	$2.76 billion	1.16	$306.95 million	$2.56	10.55
SK Telecom	$12.04 billion	1.21	$285.89 million	$1.25	30.46

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

Summary

Freenet beats SK Telecom on 6 of the 10 factors compared between the two stocks.

About Freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.

About SK Telecom

SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. The company operates through three segments: Cellular Services, Fixed-Line Telecommunications Services, and Other Businesses. The Cellular Services segment offers wireless voice and data transmission, Internet of Things solutions, platform, cloud, smart factory solutions, subscription, advertising and curated shopping under T Deal brand name, and metaverse platform-based services, as well as sells wireless devices. The Fixed-Line Telecommunications Services segment provides fixed-line telephone services; broadband Internet services; media platform services, such as Internet protocol TV and cable TV; and business communications services. The Other Businesses segment offers T-commerce services, as well as portal services under Nate brand name. In addition, it provides call center management, base station maintenance, information gathering and consulting, database and internet website, cable broadcasting, broadcasting programs, and digital contents sourcing services; manufactures non-memory and other electronic integrated circuits; international telecommunication and mobile; and operates information and communications facilities, and mobile virtual network, as well as engages in communications and communication device retail business. SK Telecom Co., Ltd. was incorporated in 1984 and is headquartered in Seoul, South Korea.