Head-To-Head Survey: SK Telecom Co. (SKM) and Sprint Corporation (S)

SK Telecom Co. (NYSE: SKM) and Sprint Corporation (NYSE:S) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Earnings and Valuation

This table compares SK Telecom Co. and Sprint Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SK Telecom Co. $15.37 billion 1.01 $4.08 billion $2.80 8.73
Sprint Corporation $33.49 billion 0.92 $10.80 billion ($0.18) -42.72

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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SK Telecom Co. and Sprint Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SK Telecom Co. 0 3 1 0 2.25
Sprint Corporation 5 10 3 0 1.89

Sprint Corporation has a consensus target price of $10.41, indicating a potential upside of 35.41%. Given Sprint Corporation’s higher possible upside, analysts plainly believe Sprint Corporation is more favorable than SK Telecom Co..

Volatility and Risk

SK Telecom Co. has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Sprint Corporation has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

11.9% of SK Telecom Co. shares are owned by institutional investors. Comparatively, 14.0% of Sprint Corporation shares are owned by institutional investors. 1.0% of SK Telecom Co. shares are owned by insiders. Comparatively, 0.2% of Sprint Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares SK Telecom Co. and Sprint Corporation’s 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%
Sprint Corporation -2.08% -3.66% -0.84%

Dividends

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.

Summary

SK Telecom Co. beats Sprint Corporation on 8 of the 15 factors compared between the two stocks.

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.

About Sprint Corporation

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.

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