VEON (VEON) versus Its Competitors Critical Review

VEON (NASDAQ:VEON) is one of 34 publicly-traded companies in the “Diversified Comm Services” industry, but how does it compare to its competitors? We will compare VEON to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.

Valuation and Earnings

This table compares VEON and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
VEON	$4.40 billion	$532.00 million	6.59
VEON Competitors	$16.25 billion	$1.14 billion	2.07

VEON’s competitors have higher revenue and earnings than VEON. VEON is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

21.3% of VEON shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Diversified Comm Services” companies are owned by institutional investors. 8.3% of shares of all “Diversified Comm Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for VEON and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	1	1	2	3.25
VEON Competitors	421	1316	1470	120	2.39

VEON presently has a consensus target price of $60.00, indicating a potential upside of 22.47%. As a group, “Diversified Comm Services” companies have a potential upside of 14.11%. Given VEON’s stronger consensus rating and higher probable upside, research analysts plainly believe VEON is more favorable than its competitors.

Volatility and Risk

VEON has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, VEON’s competitors have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Profitability

This table compares VEON and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VEON	12.12%	47.86%	8.49%
VEON Competitors	1.01%	2.54%	2.89%

Summary

VEON beats its competitors on 8 of the 13 factors compared.

VEON Company Profile

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.