Cellcom Israel (CEL) vs. SK Telecom (SKM) Head-To-Head Survey

Cellcom Israel (NYSE: CEL) and SK Telecom (NYSE:SKM) are both telecommunications services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Dividends

SK Telecom pays an annual dividend of $0.72 per share and has a dividend yield of 2.6%. Cellcom Israel does not pay a dividend. SK Telecom pays out 25.7% of its earnings in the form of a dividend.

Risk & Volatility

Cellcom Israel has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500. Comparatively, SK Telecom has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cellcom Israel and SK Telecom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cellcom Israel $1.05 billion 0.95 $39.00 million $0.33 30.00
SK Telecom $15.38 billion 1.13 $1.51 billion $2.80 9.79

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

Institutional and Insider Ownership

7.0% of Cellcom Israel shares are owned by institutional investors. Comparatively, 11.4% of SK Telecom shares are owned by institutional investors. 1.0% of SK Telecom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Cellcom Israel 3.08% 8.63% 1.90%
SK Telecom 11.62% 12.56% 6.73%

Analyst Ratings

This is a breakdown of current ratings for Cellcom Israel and SK Telecom, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 1 1 0 0 1.50
SK Telecom 0 1 2 0 2.67

Summary

SK Telecom beats Cellcom Israel on 12 of the 15 factors compared between the two stocks.

Cellcom Israel Company Profile

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

SK Telecom Company Profile

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.

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