Week Herald has published an interesting analysis comparing the shares of TIM Brazil, a telecom company in Brazil, and SK Telecom. I`m reproducing it here, along with the link to the original text.
Link: Reviewing SK Telecom (SKM) & TIM Brasil (TSU) - Week Herald:
Reviewing SK Telecom (SKM) & TIM Brasil (TSU)
SK Telecom (NYSE: SKM) and TIM Brasil (NYSE:TSU) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Institutional and Insider Ownership
11.2% of SK Telecom shares are owned by institutional investors. Comparatively, 15.0% of TIM Brasil shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
11.2% of SK Telecom shares are owned by institutional investors. Comparatively, 15.0% of TIM Brasil shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
SK Telecom has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, TIM Brasil has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.
Earnings and Valuation
This table compares SK Telecom and TIM Brasil’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SK Telecom | $15.77 billion | 0.97 | $2.34 billion | $4.75 | 5.08 |
| TIM Brasil | $3.21 billion | 3.28 | $386.64 million | $0.78 | 27.87 |
SK Telecom has higher revenue and earnings than TIM Brasil. SK Telecom is trading at a lower price-to-earnings ratio than TIM Brasil, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for SK Telecom and TIM Brasil, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SK Telecom | 1 | 3 | 2 | 0 | 2.17 |
| TIM Brasil | 0 | 3 | 4 | 0 | 2.57 |
TIM Brasil has a consensus target price of $21.20, indicating a potential downside of 2.48%. Given TIM Brasil’s stronger consensus rating and higher possible upside, analysts clearly believe TIM Brasil is more favorable than SK Telecom.
Profitability
This table compares SK Telecom and TIM Brasil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SK Telecom | 16.16% | 20.30% | 11.13% |
| TIM Brasil | 7.56% | 6.90% | 3.76% |
Dividends
SK Telecom pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. TIM Brasil pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. SK Telecom pays out 1.3% of its earnings in the form of a dividend. TIM Brasil pays out 20.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
About SK Telecom
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 TIM Brasil
TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.
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