Seek Returns logo

SKM vs. TU: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at SKM and TU, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SKM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, TU is a standard domestic listing.

SymbolSKMTU
Company NameSK Telecom Co., Ltd.TELUS Corporation
CountrySouth KoreaCanada
GICS SectorCommunication ServicesCommunication Services
GICS IndustryWireless Telecommunication ServicesDiversified Telecommunication Services
Market Capitalization8.32 billion USD23.96 billion USD
ExchangeNYSENYSE
Listing DateJune 27, 1996June 11, 1996
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of SKM and TU by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

SKM vs. TU: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolSKMTU
5-Day Price Return-0.91%-0.37%
13-Week Price Return-5.56%-1.23%
26-Week Price Return-2.33%6.41%
52-Week Price Return4.52%-3.25%
Month-to-Date Return0.18%-0.78%
Year-to-Date Return-1.45%11.60%
10-Day Avg. Volume0.60M4.17M
3-Month Avg. Volume0.71M3.68M
3-Month Volatility16.16%13.95%
Beta0.330.33

Profitability

Return on Equity (TTM)

SKM

8.61%

Wireless Telecommunication Services Industry

Max
27.45%
Q3
19.26%
Median
13.73%
Q1
9.72%
Min
-1.57%

SKM’s Return on Equity of 8.61% is in the lower quartile for the Wireless Telecommunication Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

TU

6.21%

Diversified Telecommunication Services Industry

Max
34.76%
Q3
16.39%
Median
9.92%
Q1
1.36%
Min
-10.54%

TU’s Return on Equity of 6.21% is on par with the norm for the Diversified Telecommunication Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

SKM vs. TU: A comparison of their Return on Equity (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Net Profit Margin (TTM)

SKM

5.68%

Wireless Telecommunication Services Industry

Max
23.76%
Q3
13.90%
Median
10.68%
Q1
5.59%
Min
-1.18%

SKM’s Net Profit Margin of 5.68% is aligned with the median group of its peers in the Wireless Telecommunication Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

TU

4.73%

Diversified Telecommunication Services Industry

Max
28.40%
Q3
13.17%
Median
7.18%
Q1
1.75%
Min
-14.73%

TU’s Net Profit Margin of 4.73% is aligned with the median group of its peers in the Diversified Telecommunication Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

SKM vs. TU: A comparison of their Net Profit Margin (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Operating Profit Margin (TTM)

SKM

8.96%

Wireless Telecommunication Services Industry

Max
29.85%
Q3
23.51%
Median
20.15%
Q1
16.37%
Min
8.96%

SKM’s Operating Profit Margin of 8.96% is in the lower quartile for the Wireless Telecommunication Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

TU

12.11%

Diversified Telecommunication Services Industry

Max
37.46%
Q3
22.24%
Median
14.86%
Q1
9.46%
Min
-9.42%

TU’s Operating Profit Margin of 12.11% is around the midpoint for the Diversified Telecommunication Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

SKM vs. TU: A comparison of their Operating Profit Margin (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Profitability at a Glance

SymbolSKMTU
Return on Equity (TTM)8.61%6.21%
Return on Assets (TTM)3.40%1.65%
Net Profit Margin (TTM)5.68%4.73%
Operating Profit Margin (TTM)8.96%12.11%
Gross Profit Margin (TTM)96.23%62.94%

Financial Strength

Current Ratio (MRQ)

SKM

1.03

Wireless Telecommunication Services Industry

Max
1.26
Q3
0.98
Median
0.71
Q1
0.56
Min
0.37

SKM’s Current Ratio of 1.03 is in the upper quartile for the Wireless Telecommunication Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

TU

0.86

Diversified Telecommunication Services Industry

Max
1.53
Q3
1.09
Median
0.91
Q1
0.70
Min
0.18

TU’s Current Ratio of 0.86 aligns with the median group of the Diversified Telecommunication Services industry, indicating that its short-term liquidity is in line with its sector peers.

SKM vs. TU: A comparison of their Current Ratio (MRQ) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

SKM

0.90

Wireless Telecommunication Services Industry

Max
2.80
Q3
2.17
Median
1.52
Q1
0.93
Min
0.48

Falling into the lower quartile for the Wireless Telecommunication Services industry, SKM’s Debt-to-Equity Ratio of 0.90 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

TU

2.18

Diversified Telecommunication Services Industry

Max
3.82
Q3
2.13
Median
1.40
Q1
0.71
Min
0.00

TU’s leverage is in the upper quartile of the Diversified Telecommunication Services industry, with a Debt-to-Equity Ratio of 2.18. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

SKM vs. TU: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Interest Coverage Ratio (TTM)

SKM

8.33

Wireless Telecommunication Services Industry

Max
12.67
Q3
6.47
Median
3.79
Q1
1.76
Min
-0.02

SKM’s Interest Coverage Ratio of 8.33 is in the upper quartile for the Wireless Telecommunication Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

TU

1.88

Diversified Telecommunication Services Industry

Max
16.05
Q3
8.06
Median
3.53
Q1
1.36
Min
-2.60

TU’s Interest Coverage Ratio of 1.88 is positioned comfortably within the norm for the Diversified Telecommunication Services industry, indicating a standard and healthy capacity to cover its interest payments.

SKM vs. TU: A comparison of their Interest Coverage Ratio (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Financial Strength at a Glance

SymbolSKMTU
Current Ratio (MRQ)1.030.86
Quick Ratio (MRQ)0.730.76
Debt-to-Equity Ratio (MRQ)0.902.18
Interest Coverage Ratio (TTM)8.331.88

Growth

Revenue Growth

SKM vs. TU: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

SKM vs. TU: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

SKM

6.95%

Wireless Telecommunication Services Industry

Max
8.69%
Q3
5.44%
Median
3.79%
Q1
2.67%
Min
0.00%

With a Dividend Yield of 6.95%, SKM offers a more attractive income stream than most of its peers in the Wireless Telecommunication Services industry, signaling a strong commitment to shareholder returns.

TU

4.73%

Diversified Telecommunication Services Industry

Max
10.69%
Q3
5.66%
Median
4.23%
Q1
1.76%
Min
0.00%

TU’s Dividend Yield of 4.73% is consistent with its peers in the Diversified Telecommunication Services industry, providing a dividend return that is standard for its sector.

SKM vs. TU: A comparison of their Dividend Yield (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Dividend Payout Ratio (TTM)

SKM

123.96%

Wireless Telecommunication Services Industry

Max
169.59%
Q3
122.96%
Median
73.67%
Q1
63.98%
Min
1.50%

SKM’s Dividend Payout Ratio of 123.96% is in the upper quartile for the Wireless Telecommunication Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

TU

163.46%

Diversified Telecommunication Services Industry

Max
273.77%
Q3
134.61%
Median
76.89%
Q1
41.79%
Min
0.00%

TU’s Dividend Payout Ratio of 163.46% is in the upper quartile for the Diversified Telecommunication Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

SKM vs. TU: A comparison of their Dividend Payout Ratio (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Dividend at a Glance

SymbolSKMTU
Dividend Yield (TTM)6.95%4.73%
Dividend Payout Ratio (TTM)123.96%163.46%

Valuation

Price-to-Earnings Ratio (TTM)

SKM

11.42

Wireless Telecommunication Services Industry

Max
31.43
Q3
21.97
Median
16.89
Q1
12.46
Min
7.52

In the lower quartile for the Wireless Telecommunication Services industry, SKM’s P/E Ratio of 11.42 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

TU

34.56

Diversified Telecommunication Services Industry

Max
42.43
Q3
27.51
Median
18.10
Q1
13.52
Min
4.10

A P/E Ratio of 34.56 places TU in the upper quartile for the Diversified Telecommunication Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

SKM vs. TU: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Price-to-Sales Ratio (TTM)

SKM

0.65

Wireless Telecommunication Services Industry

Max
3.65
Q3
2.21
Median
1.32
Q1
1.17
Min
0.62

In the lower quartile for the Wireless Telecommunication Services industry, SKM’s P/S Ratio of 0.65 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

TU

1.63

Diversified Telecommunication Services Industry

Max
4.55
Q3
2.45
Median
1.74
Q1
0.98
Min
0.36

TU’s P/S Ratio of 1.63 aligns with the market consensus for the Diversified Telecommunication Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

SKM vs. TU: A comparison of their Price-to-Sales Ratio (TTM) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Price-to-Book Ratio (MRQ)

SKM

1.02

Wireless Telecommunication Services Industry

Max
4.87
Q3
2.86
Median
2.07
Q1
1.40
Min
0.40

SKM’s P/B Ratio of 1.02 is in the lower quartile for the Wireless Telecommunication Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

TU

2.18

Diversified Telecommunication Services Industry

Max
7.27
Q3
3.97
Median
2.45
Q1
1.25
Min
0.27

TU’s P/B Ratio of 2.18 is within the conventional range for the Diversified Telecommunication Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

SKM vs. TU: A comparison of their Price-to-Book Ratio (MRQ) against their respective Wireless Telecommunication Services and Diversified Telecommunication Services industry benchmarks.

Valuation at a Glance

SymbolSKMTU
Price-to-Earnings Ratio (TTM)11.4234.56
Price-to-Sales Ratio (TTM)0.651.63
Price-to-Book Ratio (MRQ)1.022.18
Price-to-Free Cash Flow Ratio (TTM)3.8431.44