SoftBank Group (OTCMKTS:SFTBY) vs. SK Telecom (NYSE:SKM) Critical Contrast

SoftBank Group (OTCMKTS:SFTBY) and SK Telecom (NYSE:SKM) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Earnings & Valuation

This table compares SoftBank Group and SK Telecom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoftBank Group	$47.57 billion	4.09	$7.71 billion	$4.05	16.32
SK Telecom	$17,836.12 billion	0.00	$875.11 million	$1.95	11.15

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

Dividends

SoftBank Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. SK Telecom pays an annual dividend of $1.05 per share and has a dividend yield of 4.8%. SoftBank Group pays out 2.5% of its earnings in the form of a dividend. SK Telecom pays out 53.8% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoftBank Group	23.99%	12.80%	3.86%
SK Telecom	5.92%	8.92%	3.61%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SoftBank Group and SK Telecom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoftBank Group	0	2	0	0	2.00
SK Telecom	1	3	1	0	2.00

Institutional and Insider Ownership

0.0% of SoftBank Group shares are held by institutional investors. 1.0% of SK Telecom shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

SoftBank Group has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, SK Telecom has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Summary

SoftBank Group beats SK Telecom on 10 of the 14 factors compared between the two stocks.

About SoftBank Group

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; ICT services products to enterprise customers; and communication device-related products and IoT equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux / OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.

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.