VimpelCom (NASDAQ: VEON) and Vonage Holdings Corp. (NYSE:VG) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitabiliy, risk, valuation, institutional ownership, analyst recommendations and earnings.

Dividends

VimpelCom pays an annual dividend of $0.17 per share and has a dividend yield of 4.1%. Vonage Holdings Corp. does not pay a dividend.

Profitability

This table compares VimpelCom and Vonage Holdings Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VimpelCom 18.26% -8.16% -1.71%
Vonage Holdings Corp. 2.00% 12.68% 5.95%

Insider & Institutional Ownership

11.0% of VimpelCom shares are held by institutional investors. Comparatively, 77.4% of Vonage Holdings Corp. shares are held by institutional investors. 14.1% of Vonage Holdings Corp. shares are held by company insiders. 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.

Earnings and Valuation

This table compares VimpelCom and Vonage Holdings Corp.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
VimpelCom $9.15 billion 0.80 $3.12 billion N/A N/A
Vonage Holdings Corp. $972.14 million 1.75 $100.53 million $0.08 95.76

VimpelCom has higher revenue and earnings than Vonage Holdings Corp..

Analyst Ratings

This is a summary of current recommendations and price targets for VimpelCom and Vonage Holdings Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VimpelCom 0 2 8 0 2.80
Vonage Holdings Corp. 0 0 4 0 3.00

VimpelCom currently has a consensus target price of $5.44, indicating a potential upside of 30.08%. Vonage Holdings Corp. has a consensus target price of $8.50, indicating a potential upside of 10.97%. Given VimpelCom’s higher possible upside, analysts plainly believe VimpelCom is more favorable than Vonage Holdings Corp..

Risk & Volatility

VimpelCom has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, Vonage Holdings Corp. has a beta of -0.01, suggesting that its stock price is 101% less volatile than the S&P 500.

About VimpelCom

VEON Ltd., formerly VimpelCom Ltd., is a provider of communications services. The Company operates as personal internet platform. It integrates powerful data analytics and artificial intelligence, with a fresh take on messaging capabilities. It enables its users and communities to connect by voice, text, picture and video through a designed interface.

About Vonage Holdings Corp.

Vonage Holdings Corp. is a provider of cloud communications services for businesses and consumers, and consumer and communication solutions across multiple devices. The Company operates through two segments: Business and Consumer. For business services customers, the Company provides cloud-based unified communications as a service (UCaaS) solutions, consisting of integrated voice, text, video, data, collaboration, and mobile applications over its scalable session initiation protocol (SIP) based voice over Internet protocol (VoIP) network. It serves a range of the business market, including the small and medium business (SMB), mid-market and enterprise segments. Through its cloud-based middleware solution, gUnify, the Company provides customers the ability to integrate its cloud communications platform with various cloud-based productivity and customer relationship management (CRM) solutions, including Google’s G Suite, Zendesk, Salesforce’s Sales Cloud, Oracle and Clio.

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