VimpelCom (NASDAQ: VEON) and Turkcell Iletisim Hizmetleri AS (NYSE:TKC) are both mid-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitabiliy, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Dividends

VimpelCom pays an annual dividend of $0.17 per share and has a dividend yield of 4.3%. Turkcell Iletisim Hizmetleri AS pays an annual dividend of $0.25 per share and has a dividend yield of 2.9%. Turkcell Iletisim Hizmetleri AS pays out 52.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for VimpelCom and Turkcell Iletisim Hizmetleri AS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VimpelCom 1 1 8 0 2.70
Turkcell Iletisim Hizmetleri AS 0 2 3 0 2.60

VimpelCom currently has a consensus target price of $5.31, suggesting a potential upside of 34.84%. Given VimpelCom’s stronger consensus rating and higher possible upside, research analysts clearly believe VimpelCom is more favorable than Turkcell Iletisim Hizmetleri AS.

Institutional & Insider Ownership

10.2% of VimpelCom shares are held by institutional investors. Comparatively, 5.6% of Turkcell Iletisim Hizmetleri AS shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

VimpelCom has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, Turkcell Iletisim Hizmetleri AS has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares VimpelCom and Turkcell Iletisim Hizmetleri AS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VimpelCom 23.33% -7.27% -1.34%
Turkcell Iletisim Hizmetleri AS 11.07% 16.09% 8.28%

Valuation & Earnings

This table compares VimpelCom and Turkcell Iletisim Hizmetleri AS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
VimpelCom $9.15 billion 0.76 $3.12 billion N/A N/A
Turkcell Iletisim Hizmetleri AS N/A N/A N/A $0.48 17.81

VimpelCom has higher revenue and earnings than Turkcell Iletisim Hizmetleri AS.

Summary

VimpelCom beats Turkcell Iletisim Hizmetleri AS on 9 of the 11 factors compared between the two stocks.

VimpelCom Company Profile

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.

Turkcell Iletisim Hizmetleri AS Company Profile

Turkcell Iletisim Hizmetleri AS is engaged in establishing and operating a Global System for Mobile Communications (GSM) network in Turkey and regional states. The Company’s segments include Turkcell Turkey, which includes the operations of Turkcell Superonline, Turkcell Satis ve Dagitim Hizmetleri A.S., group call center operations of Global Bilgi Pazarlama Danisma ve Cagri Servisi Hizmetleri A.S., Turktell Bilisim Servisleri A.S., Kule Hizmet ve Isletmecilik A.S., Turkcell Odeme Hizmetleri A.S. and Turkcell Gayrimenkul Hizmetleri A.S; Turkcell International, which includes the operations of Kibris Mobile Telekomunikasyon Limited Sirketi, Eastasian Consortium BV, lifecell LLC, UkrTower LLC, LLC Global Bilgi, Turkcell Europe GmbH, Lifetech LLC, Beltower LLC and Fintur Holdings BV, and Other, which comprises the information and entertainment services in Turkey and Azerbaijan, and non-group call center operations of Turkcell Global Bilgi and Turkcell Finansman AS.

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