SK Telecom (SKM) & America Movil SAB de CV (NYSE:AMOV) Critical Contrast

SK Telecom (NYSE: SKM) and America Movil SAB de CV (NYSE:AMOV) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Dividends

SK Telecom pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. America Movil SAB de CV does not pay a dividend. SK Telecom pays out 1.7% of its earnings in the form of a dividend.

Volatility & Risk

SK Telecom has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, America Movil SAB de CV has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares SK Telecom and America Movil SAB de CV’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SK Telecom $15.38 billion 1.15 $1.51 billion $3.44 8.08
America Movil SAB de CV N/A N/A N/A $0.55 31.07

SK Telecom has higher revenue and earnings than America Movil SAB de CV. SK Telecom is trading at a lower price-to-earnings ratio than America Movil SAB de CV, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SK Telecom and America Movil SAB de CV, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SK Telecom 0 2 2 0 2.50
America Movil SAB de CV 0 1 0 0 2.00

Profitability

This table compares SK Telecom and America Movil SAB de CV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SK Telecom 14.23% 15.04% 8.14%
America Movil SAB de CV -3.37% -21.11% -2.41%

Institutional & Insider Ownership

11.4% of SK Telecom shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

SK Telecom beats America Movil SAB de CV on 10 of the 13 factors compared between the two stocks.

SK Telecom 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.

America Movil SAB de CV Company Profile

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

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