SK Telecom Co. (NYSE: SKM) and Gogo (NASDAQ:GOGO) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
SK Telecom Co. 11.62% 12.56% 6.73%
Gogo -23.51% N/A -12.24%

Earnings & Valuation

This table compares SK Telecom Co. and Gogo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
SK Telecom Co. $15.38 billion 1.05 $1.51 billion $2.80 9.08
Gogo $596.55 million 1.41 -$124.50 million ($1.99) -4.88

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

Dividends

SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. Gogo does not pay a dividend. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

11.9% of SK Telecom Co. shares are held by institutional investors. Comparatively, 66.6% of Gogo shares are held by institutional investors. 1.0% of SK Telecom Co. shares are held by company insiders. Comparatively, 37.3% of Gogo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

SK Telecom Co. has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SK Telecom Co. and Gogo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SK Telecom Co. 0 2 1 0 2.33
Gogo 1 1 3 0 2.40

Gogo has a consensus target price of $14.19, indicating a potential upside of 45.96%. Given Gogo’s stronger consensus rating and higher possible upside, analysts clearly believe Gogo is more favorable than SK Telecom Co..

Summary

Gogo beats SK Telecom Co. on 8 of the 15 factors compared between the two stocks.

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.

About Gogo

Gogo Inc. is a holding company. The Company is a provider of in-flight broadband connectivity and connectivity-enabled services to commercial and business aviation. The Company operates through three segments: Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW) and Business Aviation (BA). The CA-NA segment offers air-to-ground (ATG) and satellite connectivity and entertainment services to commercial aircraft flying routes generally within North America. The CA-ROW segment offers satellite connectivity and entertainment services, using 2Ku and Ku solutions, to commercial aircraft flying routes outside of North America. The Company’s BA segment offers a suite of integrated equipment, network and Internet connectivity products and services to the business aviation market. As of December 31, 2016, it provided services on 2,943 commercial aircraft. The Company offers a package of airborne equipment for its ATG-4/ATG and satellite services.

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