Analyzing Mobile TeleSystems OJSC (MBT) and SK Telecom Co. (SKM)
Mobile TeleSystems OJSC (NYSE: MBT) and SK Telecom Co. (NYSE:SKM) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.
This is a summary of recent ratings and recommmendations for Mobile TeleSystems OJSC and SK Telecom Co., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mobile TeleSystems OJSC||0||2||3||0||2.60|
|SK Telecom Co.||0||3||1||0||2.25|
Mobile TeleSystems OJSC presently has a consensus price target of $10.97, indicating a potential upside of 5.15%. Given Mobile TeleSystems OJSC’s stronger consensus rating and higher possible upside, research analysts clearly believe Mobile TeleSystems OJSC is more favorable than SK Telecom Co..
Institutional and Insider Ownership
32.1% of Mobile TeleSystems OJSC shares are owned by institutional investors. Comparatively, 11.9% of SK Telecom Co. shares are owned by institutional investors. 1.0% of Mobile TeleSystems OJSC shares are owned by company insiders. Comparatively, 1.0% of SK Telecom Co. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Mobile TeleSystems OJSC and SK Telecom Co.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mobile TeleSystems OJSC||$14.03 billion||0.74||$4.86 billion||$0.87||11.99|
|SK Telecom Co.||$15.16 billion||1.04||$4.03 billion||$2.80||8.88|
Mobile TeleSystems OJSC has higher revenue, but lower earnings than SK Telecom Co.. SK Telecom Co. is trading at a lower price-to-earnings ratio than Mobile TeleSystems OJSC, indicating that it is currently the more affordable of the two stocks.
Mobile TeleSystems OJSC pays an annual dividend of $0.72 per share and has a dividend yield of 6.9%. SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Mobile TeleSystems OJSC pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend.
Volatility & Risk
Mobile TeleSystems OJSC has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, SK Telecom Co. has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
This table compares Mobile TeleSystems OJSC and SK Telecom Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mobile TeleSystems OJSC||12.42%||40.25%||10.03%|
|SK Telecom Co.||11.62%||12.56%||6.73%|
Mobile TeleSystems OJSC beats SK Telecom Co. on 11 of the 15 factors compared between the two stocks.
About Mobile TeleSystems OJSC
Mobile TeleSystems Public Joint Stock Company, formerly Mobile TeleSystems Open Joint Stock Company, is a provider of telecommunications services. The Company provides mobile and fixed line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed line segment includes fixed line operations carried out in Moscow by the Company’s subsidiary MGTS. Its Ukraine segment includes mobile and fixed line operations carried out across multiple regions of Ukraine.
About SK Telecom Co.
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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