VEON (VEON) versus Its Competitors Critical Analysis

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

Institutional and Insider 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for VEON and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	1	1	2	3.25
VEON Competitors	422	1320	1470	120	2.39

VEON currently has a consensus target price of $60.00, suggesting a potential upside of 29.59%. As a group, “Diversified Comm Services” companies have a potential upside of 14.51%. Given VEON’s stronger consensus rating and higher possible upside, equities research analysts plainly believe VEON is more favorable than its rivals.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
VEON	$4.40 billion	$532.00 million	6.23
VEON Competitors	$5,476.16 billion	$1.14 billion	1.88

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

Profitability

This table compares VEON and its rivals’ 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%	2.51%	2.89%

Volatility & Risk

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

Summary

VEON beats its rivals 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.