Sprint Corporation (NYSE: S) and SK Telecom Co. (NYSE:SKM) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
This table compares Sprint Corporation and SK Telecom Co.’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%|
Institutional & Insider Ownership
14.0% of Sprint Corporation shares are owned by institutional investors. Comparatively, 11.9% of SK Telecom Co. shares are owned by institutional investors. 0.2% of Sprint Corporation 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Sprint Corporation and SK Telecom Co.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sprint Corporation||$33.49 billion||0.93||$10.80 billion||($0.18)||-43.22|
|SK Telecom Co.||$15.16 billion||1.03||$4.03 billion||$2.80||8.78|
Sprint Corporation has higher revenue and earnings than SK Telecom Co.. Sprint Corporation 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.
Volatility & Risk
Sprint Corporation has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, SK Telecom Co. has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.
SK Telecom Co. pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Sprint Corporation does not pay a dividend. SK Telecom Co. pays out 25.7% of its earnings in the form of a dividend.
This is a summary of recent ratings for Sprint Corporation and SK Telecom Co., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SK Telecom Co.||0||3||1||0||2.25|
Sprint Corporation currently has a consensus price target of $10.41, indicating a potential upside of 33.85%. Given Sprint Corporation’s higher possible upside, analysts clearly believe Sprint Corporation is more favorable than SK Telecom Co..
SK Telecom Co. beats Sprint Corporation on 8 of the 15 factors compared between the two stocks.
Sprint Corporation Company Profile
Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.
SK Telecom Co. Company Profile
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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