Analyzing KDDI (OTCMKTS:KDDIY) & KORE Group (NYSE:KORE)

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

Institutional and Insider Ownership

0.1% of KDDI shares are held by institutional investors. Comparatively, 57.5% of KORE Group shares are held by institutional investors. 33.5% of KORE Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

KDDI has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, KORE Group has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Profitability

This table compares KDDI and KORE 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
KORE Group	-27.37%	N/A	-18.41%

Valuation and Earnings

This table compares KDDI and KORE Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KDDI	$40.34 billion	1.78	$4.67 billion	$1.26	14.21
KORE Group	$279.62 million	0.58	-$62.98 million	($3.86)	-2.40

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

Analyst Ratings

This is a summary of current ratings and price targets for KDDI and KORE Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KDDI	0	1	0	1	3.00
KORE Group	1	1	0	0	1.50

KORE Group has a consensus target price of $5.00, suggesting a potential downside of 45.95%. Given KORE Group’s higher probable upside, analysts clearly believe KORE Group is more favorable than KDDI.

Summary

KDDI beats KORE Group on 9 of the 13 factors compared between the two stocks.

About KDDI

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company’s products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.