Contrasting KDDI (OTCMKTS:KDDIY) & Kyivstar Group (NASDAQ:KYIV)

KDDI (OTCMKTS:KDDIY) and Kyivstar Group (NASDAQ:KYIV) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Profitability

This table compares KDDI and Kyivstar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KDDI	N/A	N/A	N/A
Kyivstar Group	26.35%	25.50%	15.72%

Analyst Ratings

This is a summary of recent ratings for KDDI and Kyivstar Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KDDI	0	1	0	1	3.00
Kyivstar Group	0	2	3	0	2.60

Kyivstar Group has a consensus target price of $16.62, suggesting a potential upside of 27.30%. Given Kyivstar Group’s higher possible upside, analysts clearly believe Kyivstar Group is more favorable than KDDI.

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares KDDI and Kyivstar Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KDDI	$40.34 billion	1.74	$4.67 billion	$1.25	13.99
Kyivstar Group	$1.16 billion	2.62	$124.00 million	$1.43	9.13

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

Volatility and Risk

KDDI has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500. Comparatively, Kyivstar Group has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.

Summary

Kyivstar Group beats KDDI on 8 of the 13 factors compared between the two stocks.

About KDDI

KDDI Corporation is a Japanese telecommunications and technology company formed in 2000 through the merger of DDI, KDD and IDO. Headquartered in Tokyo, it serves consumers and businesses in Japan and provides communications and related services in international markets. The company’s consumer offerings include mobile services under the au, UQ mobile and povo brands, as well as fixed-line communications and broadband. KDDI also provides business customers with mobile and fixed networks, cloud and data-center services, cybersecurity, and Internet of Things solutions.

About Kyivstar Group

Kyivstar Group is a Ukrainian telecommunications and digital services company centered on Kyivstar, one of the country’s major communications providers. Its services include mobile voice and data, fixed-line internet, and digital television for consumers, as well as connectivity and technology solutions for businesses. Kyivstar also offers digital services in areas such as entertainment, healthcare, cloud computing, and cybersecurity. Its portfolio includes Kyivstar TV and Helsi, a digital health platform used to access healthcare services in Ukraine.