Critical Review: VEON (VEON) & Its Competitors

VEON (NASDAQ:VEON) is one of 34 public companies in the “Diversified Comm Services” industry, but how does it weigh in compared to its peers? We will compare VEON to related businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Risk and Volatility

VEON has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, VEON’s peers have a beta of 0.55, suggesting that their average share price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for VEON and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	1	1	2	3.25
VEON Competitors	422	1327	1472	120	2.39

VEON currently has a consensus target price of $60.00, suggesting a potential upside of 14.28%. As a group, “Diversified Comm Services” companies have a potential upside of 19.21%. Given VEON’s peers higher possible upside, analysts plainly believe VEON has less favorable growth aspects than its peers.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
VEON	$4.40 billion	$532.00 million	7.07
VEON Competitors	$16.25 billion	$1.14 billion	1.20

VEON’s peers have higher revenue and earnings than VEON. VEON is trading at a higher price-to-earnings ratio than its peers, 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. 7.4% of shares of all “Diversified Comm Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares VEON and its peers’ 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%

Summary

VEON beats its peers on 7 of the 13 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.