Comparing SK Telecom Co. (SKM) and The Competition
SK Telecom Co. (NYSE: SKM) is one of 36 public companies in the “Wireless Telecommunications Services” industry, but how does it weigh in compared to its competitors? We will compare SK Telecom Co. to similar companies based on the strength of its institutional ownership, dividends, risk, profitability, analyst recommendations, valuation and earnings.
SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 3.0%. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 3.1% and pay out 61.2% of their earnings in the form of a dividend.
This table compares SK Telecom Co. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SK Telecom Co.||11.62%||12.85%||6.86%|
|SK Telecom Co. Competitors||-999.64%||3.16%||-6.42%|
Earnings and Valuation
This table compares SK Telecom Co. and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|SK Telecom Co.||$15.37 billion||$4.08 billion||8.65|
|SK Telecom Co. Competitors||$26.97 billion||$8.00 billion||-5.54|
SK Telecom Co.’s competitors have higher revenue and earnings than SK Telecom Co.. SK Telecom Co. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Institutional and Insider Ownership
11.9% of SK Telecom Co. shares are held by institutional investors. Comparatively, 40.4% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 1.0% of SK Telecom Co. shares are held by insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are held by 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.
Risk and Volatility
SK Telecom Co. has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, SK Telecom Co.’s competitors have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for SK Telecom Co. and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SK Telecom Co.||0||3||1||0||2.25|
|SK Telecom Co. Competitors||572||1701||1789||69||2.33|
As a group, “Wireless Telecommunications Services” companies have a potential upside of 21.03%. Given SK Telecom Co.’s competitors stronger consensus rating and higher probable upside, analysts plainly believe SK Telecom Co. has less favorable growth aspects than its competitors.
SK Telecom Co. competitors beat SK Telecom Co. on 10 of the 15 factors compared.
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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