Koninklijke KPN (OTCMKTS:KKPNF) vs. NTT (OTCMKTS:NTTYY) Head-To-Head Comparison

Koninklijke KPN (OTCMKTS:KKPNF) and NTT (OTCMKTS:NTTYY) are both large-cap communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Risk & Volatility

Koninklijke KPN has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, NTT has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of NTT shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Koninklijke KPN and NTT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke KPN	$6.59 billion	2.84	$967.35 million	$0.26	18.54
NTT	$95.72 billion	0.89	$6.84 billion	$1.84	14.21

NTT has higher revenue and earnings than Koninklijke KPN. NTT is trading at a lower price-to-earnings ratio than Koninklijke KPN, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Koninklijke KPN and NTT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke KPN	15.20%	26.34%	7.17%
NTT	6.29%	9.10%	1.97%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Koninklijke KPN and NTT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke KPN	0	1	0	1	3.00
NTT	0	1	0	1	3.00

Summary

Koninklijke KPN beats NTT on 6 of the 10 factors compared between the two stocks.

About Koninklijke KPN

Koninklijke KPN N.V. is a telecommunications company based in the Netherlands. Its roots trace to the country’s former state-owned postal and telecommunications operator, PTT, which was reorganized as KPN in 1989. KPN provides mobile and fixed-line communications, broadband internet and television services to consumers. It also serves businesses and government organizations with connectivity, communications and information technology services. The company operates primarily in the Netherlands, where it owns and manages mobile and fixed networks, including fiber-optic infrastructure.

About NTT

NTT, formally Nippon Telegraph and Telephone Corporation, is a Japanese telecommunications and information technology company. Its businesses include fixed-line and mobile communications, internet and network services, systems integration, cloud computing, data centers, and other information and communications technology solutions. The company traces its origins to Japan’s Nippon Telegraph and Telephone Public Corporation, established in 1952. It was reorganized as a private corporation in 1985 and has since developed a broad portfolio of communications and technology businesses.