Vodafone Group PLC (NASDAQ: VOD) and SK Telecom Co. (NYSE:SKM) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

10.2% of Vodafone Group PLC shares are held by institutional investors. Comparatively, 11.9% of SK Telecom Co. shares are held by institutional investors. 1.0% of Vodafone Group PLC shares are held by insiders. Comparatively, 1.0% of SK Telecom Co. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Vodafone Group PLC has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, SK Telecom Co. has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Vodafone Group PLC and SK Telecom Co., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vodafone Group PLC 1 4 6 1 2.58
SK Telecom Co. 0 3 1 0 2.25

Vodafone Group PLC presently has a consensus price target of $31.52, suggesting a potential upside of 10.75%. Given Vodafone Group PLC’s stronger consensus rating and higher probable upside, equities analysts clearly believe Vodafone Group PLC is more favorable than SK Telecom Co..

Profitability

This table compares Vodafone Group PLC and SK Telecom Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vodafone Group PLC N/A N/A N/A
SK Telecom Co. 11.62% 12.56% 6.73%

Valuation and Earnings

This table compares Vodafone Group PLC and SK Telecom Co.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vodafone Group PLC N/A N/A N/A N/A N/A
SK Telecom Co. $15.16 billion 1.03 $4.03 billion $2.80 8.78

SK Telecom Co. has higher revenue and earnings than Vodafone Group PLC.

Dividends

Vodafone Group PLC pays an annual dividend of $1.64 per share and has a dividend yield of 5.8%. SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend.

Summary

Vodafone Group PLC beats SK Telecom Co. on 7 of the 12 factors compared between the two stocks.

Vodafone Group PLC Company Profile

Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.

SK Telecom Co. Company Profile

SK Telecom Co., Ltd. provides wireless telecommunications in Korea. The Company is engaged in the commercial development and implementation of wireless and fixed-line technologies and services, as well as develop its platforms, including Internet of things (IoT) solutions, lifestyle enhancement and advanced media. It operates through three segments: cellular services, which include wireless voice and data transmission services, sales of wireless devices, IoT solutions platform services and lifestyle enhancement platform services; fixed-line telecommunication services, which include fixed-line telephone services, broadband Internet services, advanced media platform services (including Internet Protocol television (IPTV)) and business communications services, and other businesses, which include its commerce business, its hardware business and other operations. Its brands include SK Telecom, T-Roaming, 7Mobile, B phone, 00700, B tv, Syrup, UO Smart Beam Laser, Astell&Kern and Nate.

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