TELUS (NYSE: TU) and SK Telecom Co (NYSE:SKM) are both large-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitabiliy, risk and dividends.
This is a summary of recent ratings and target prices for TELUS and SK Telecom Co, as reported by MarketBeat.com.
TELUS presently has a consensus price target of $42.50, indicating a potential upside of 28.28%. Given TELUS’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TELUS is more favorable than SK Telecom Co.
Earnings & Valuation
This table compares TELUS and SK Telecom Co’s revenue, earnings per share and valuation.
SK Telecom Co has higher revenue and earnings than TELUS. SK Telecom Co is trading at a lower price-to-earnings ratio than TELUS, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
54.2% of TELUS shares are held by institutional investors. Comparatively, 11.4% of SK Telecom Co shares are held by institutional investors. 1.0% of SK Telecom Co shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
TELUS pays an annual dividend of $1.43 per share and has a dividend yield of 4.3%. SK Telecom Co pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. TELUS pays out 91.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SK Telecom Co pays out 3.1% of its earnings in the form of a dividend.
This table compares TELUS and SK Telecom Co’s net margins, return on equity and return on assets.
Risk and Volatility
TELUS has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, SK Telecom Co has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
TELUS beats SK Telecom Co on 11 of the 16 factors compared between the two stocks.
TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.
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.