Contrasting VEON (VEON) and Its Competitors

VEON (NASDAQ:VEON) is one of 34 public companies in the “Diversified Comm Services” industry, but how does it contrast to its peers? We will compare VEON to related businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, risk and dividends.

Profitability

This table compares VEON and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VEON	12.12%	47.86%	8.49%
VEON Competitors	1.01%	2.54%	2.89%

Earnings and Valuation

This table compares VEON and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
VEON	$4.40 billion	$532.00 million	6.33
VEON Competitors	$5,484.57 billion	$1.14 billion	2.00

VEON’s peers have higher revenue and earnings than VEON. VEON is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

21.3% of VEON shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Diversified Comm Services” companies are owned by institutional investors. 8.5% of shares of all “Diversified Comm Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

VEON pays an annual dividend of $0.23 per share and has a dividend yield of 0.5%. VEON pays out 3.1% of its earnings in the form of a dividend. As a group, “Diversified Comm Services” companies pay a dividend yield of 2.8% and pay out 34.0% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for VEON and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	1	1	2	3.25
VEON Competitors	422	1316	1470	120	2.39

VEON presently has a consensus price target of $60.00, suggesting a potential upside of 27.62%. As a group, “Diversified Comm Services” companies have a potential upside of 14.66%. Given VEON’s stronger consensus rating and higher possible upside, research analysts clearly believe VEON is more favorable than its peers.

Volatility and Risk

VEON has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, VEON’s peers have a beta of 0.73, meaning that their average share price is 27% less volatile than the S&P 500.

Summary

VEON beats its peers on 9 of the 15 factors compared.

VEON Company Profile

VEON Ltd., a digital operator, provides connectivity and internet services in Pakistan, Ukraine, Kazakhstan, Bangladesh, Uzbekistan, and Kyrgyzstan. It offers mobile telecommunications services, including value added and call completion, national and international roaming, wireless Internet access, mobile financial, and mobile bundle services; data connectivity, cross border transit, voice, Internet, and data services; fixed-line telecommunications using intercity fiber optic networks; and Internet-TV using Fiber to the building technology. The company also sells equipment, infrastructure, and accessories. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.