Contrasting VEON (VEON) and Its Rivals

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 businesses based on the strength of its risk, valuation, profitability, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for VEON and its rivals, 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	422	1323	1471	120	2.39

VEON currently has a consensus target price of $60.00, suggesting a potential upside of 19.09%. As a group, “Diversified Comm Services” companies have a potential upside of 20.16%. Given VEON’s rivals higher probable upside, analysts clearly believe VEON has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares VEON and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
VEON	$4.40 billion	$532.00 million	6.78
VEON Competitors	$26.94 billion	$1.14 billion	1.45

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.

Institutional and Insider Ownership

21.3% of VEON shares are owned by institutional investors. Comparatively, 38.9% of shares of all “Diversified Comm Services” companies are owned by institutional investors. 7.6% of shares of all “Diversified Comm Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

VEON pays an annual dividend of $0.23 per share and has a dividend yield of 0.5%. VEON pays out 3.1% of its earnings in the form of a dividend. As a group, “Diversified Comm Services” companies pay a dividend yield of 3.1% and pay out 41.5% of their earnings in the form of a dividend.

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	1.80%	10.98%	3.06%

Volatility & Risk

VEON has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, VEON’s rivals have a beta of 0.73, meaning that their average share price is 27% less volatile than the S&P 500.

Summary

VEON beats its rivals on 8 of the 15 factors compared.

About VEON

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.