Comparing PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) and VEON (NASDAQ:VEON)

VEON (NASDAQ:VEON) and PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Insider and Institutional Ownership

21.3% of VEON shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

VEON has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, PT Telekomunikasi Indonesia, Tbk has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for VEON and PT Telekomunikasi Indonesia, Tbk, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	2	1	1	2.75
PT Telekomunikasi Indonesia, Tbk	1	1	0	0	1.50

VEON currently has a consensus target price of $60.00, suggesting a potential upside of 15.38%. Given VEON’s stronger consensus rating and higher probable upside, research analysts clearly believe VEON is more favorable than PT Telekomunikasi Indonesia, Tbk.

Profitability

This table compares VEON and PT Telekomunikasi Indonesia, Tbk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VEON	15.26%	58.72%	10.13%
PT Telekomunikasi Indonesia, Tbk	14.78%	13.86%	7.44%

Valuation and Earnings

This table compares VEON and PT Telekomunikasi Indonesia, Tbk”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VEON	$4.00 billion	0.90	$415.00 million	$8.80	5.91
PT Telekomunikasi Indonesia, Tbk	$9.45 billion	N/A	$1.47 billion	$1.35	15.85

PT Telekomunikasi Indonesia, Tbk has higher revenue and earnings than VEON. VEON is trading at a lower price-to-earnings ratio than PT Telekomunikasi Indonesia, Tbk, indicating that it is currently the more affordable of the two stocks.

Summary

VEON beats PT Telekomunikasi Indonesia, Tbk on 10 of the 13 factors compared between the two stocks.

About VEON

VEON Ltd., a digital operator, provides connectivity and internet services in Pakistan, Ukraine, Kazakhstan, Bangladesh, Uzbekistan, and Kyrgyzstan. It offers mobile telecommunications services, including value added and call completion, national and international roaming, wireless Internet access, mobile financial, and mobile bundle services; data connectivity, cross border transit, voice, Internet, and data services; fixed-line telecommunications using intercity fiber optic networks; and Internet-TV using Fiber to the building technology. The company also sells equipment, infrastructure, and accessories. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.

About PT Telekomunikasi Indonesia, Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.