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

Analyst Ratings

This is a breakdown of current recommendations for Ruckus Wireless and SK Telecom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruckus Wireless 0 0 0 0 N/A
SK Telecom 0 1 2 0 2.67

Insider & Institutional Ownership

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

Dividends

SK Telecom pays an annual dividend of $0.72 per share and has a dividend yield of 2.5%. Ruckus Wireless does not pay a dividend. SK Telecom pays out 25.7% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Ruckus Wireless -0.92% -1.17% -0.88%
SK Telecom 14.25% 15.13% 8.19%

Earnings & Valuation

This table compares Ruckus Wireless and SK Telecom’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ruckus Wireless N/A N/A N/A $0.05 257.40
SK Telecom $15.38 billion 1.18 $1.51 billion $2.80 10.23

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

Summary

SK Telecom beats Ruckus Wireless on 9 of the 11 factors compared between the two stocks.

About Ruckus Wireless

Ruckus Wireless, Inc. is a supplier of advanced (Wi-Fi) solutions. The Company’s solutions, which it call Smart Wi-Fi, are used by service providers and enterprises to solve a range of network capacity, coverage and reliability challenges associated with wireless traffic demands. It operates through selling controllers and access points along with related software and services segment. The Company markets and sells its products and technology through a network of channel partners to a variety of service providers and enterprises around the world. Its Smart Wi-Fi solutions offer features and functionality, such as enhanced reliability, extended range and scalability. Its products include controllers, indoor and outdoor access points, wireless bridges, controller software platforms, software management solutions, including reporting and analytics, and Wi-Fi-related cloud services, such as location-based positioning, and certificate-based security and on-boarding of Wi-Fi devices.

About SK Telecom

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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