SK Telecom (NYSE:SKM) & KT (NYSE:KT) Financial Comparison

SK Telecom (NYSE:SKM) and KT (NYSE:KT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Valuation & Earnings

This table compares SK Telecom and KT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SK Telecom	$13.15 billion	0.68	$875.11 million	$1.95	11.61
KT	$19.37 billion	0.54	$321.90 million	$0.92	21.97

SK Telecom has higher earnings, but lower revenue than KT. SK Telecom is trading at a lower price-to-earnings ratio than KT, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for SK Telecom and KT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SK Telecom	1	3	1	0	2.00
KT	0	0	2	1	3.33

Dividends

SK Telecom pays an annual dividend of $1.06 per share and has a dividend yield of 4.7%. KT pays an annual dividend of $0.69 per share and has a dividend yield of 3.4%. SK Telecom pays out 54.4% of its earnings in the form of a dividend. KT pays out 75.0% 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. SK Telecom is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

SK Telecom has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, KT has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares SK Telecom and KT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SK Telecom	5.92%	8.89%	3.59%
KT	2.37%	3.47%	1.52%

Institutional and Insider Ownership

18.9% of KT shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by insiders. Comparatively, 1.0% of KT 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.

Summary

SK Telecom beats KT on 8 of the 15 factors compared between the two stocks.

About SK Telecom

SK Telecom Co., Ltd. provides wireless telecommunication services in South Korea. The company operates through three segments: Cellular Services, Fixed-Line Telecommunications Services, and Other Businesses. The Cellular Services segment offers wireless voice and data transmission, Internet of Things solutions, platform, cloud, smart factory solutions, subscription, advertising and curated shopping under T Deal brand name, and metaverse platform-based services, as well as sells wireless devices. The Fixed-Line Telecommunications Services segment provides fixed-line telephone services; broadband Internet services; media platform services, such as Internet protocol TV and cable TV; and business communications services. The Other Businesses segment offers T-commerce services, as well as portal services under Nate brand name. In addition, it provides call center management, base station maintenance, information gathering and consulting, database and internet website, cable broadcasting, broadcasting programs, and digital contents sourcing services; manufactures non-memory and other electronic integrated circuits; international telecommunication and mobile; and operates information and communications facilities, and mobile virtual network, as well as engages in communications and communication device retail business. SK Telecom Co., Ltd. was incorporated in 1984 and is headquartered in Seoul, South Korea.

About KT

KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technology; fixed-line telephone services, including local, domestic long-distance, international long-distance, and voice over Internet protocol telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as fixed-line and leased line services, as well as broadband Internet connection services. It also provides media and content services, including IPTV, satellite TV, digital music, e-commerce, online advertising consulting, and web comics and novels services; and credit card processing and other financial services. In addition, the company offers information technology and network services, and satellite services; sells handsets and miscellaneous telecommunications equipment; develops and sells residential units and commercial real estate; and rents real estate properties. Further, it maintains public telephones; offers security, B2C and B2B, investment fund, software development and data processing, value added network, call center, system integration and maintenance, marketing, PCS distribution, truck transportation and trucking arrangement business, cloud system implementation, satellite communication network, installation and management, and data center development and related services. Additionally, the company is involved in the Internet banking ASP and security solutions, residential building development and supply, sports team management, technology business finance, and submarine cable construction and maintenance businesses. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam-si, South Korea.