KT (NYSE:KT) and TELIA Co A B/ADR (OTCMKTS:TLSNY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
This table compares KT and TELIA Co A B/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TELIA Co A B/ADR||6.30%||10.41%||4.51%|
KT pays an annual dividend of $0.39 per share and has a dividend yield of 2.7%. TELIA Co A B/ADR pays an annual dividend of $0.36 per share and has a dividend yield of 3.8%. KT pays out 44.3% of its earnings in the form of a dividend. TELIA Co A B/ADR pays out 81.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KT has increased its dividend for 2 consecutive years.
This is a breakdown of current recommendations for KT and TELIA Co A B/ADR, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TELIA Co A B/ADR||1||0||0||0||1.00|
Earnings and Valuation
This table compares KT and TELIA Co A B/ADR’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KT||$21.05 billion||0.34||$415.40 million||$0.88||16.36|
|TELIA Co A B/ADR||$9.36 billion||2.21||$1.13 billion||$0.44||21.66|
TELIA Co A B/ADR has lower revenue, but higher earnings than KT. KT is trading at a lower price-to-earnings ratio than TELIA Co A B/ADR, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
31.8% of KT shares are held by institutional investors. Comparatively, 0.1% of TELIA Co A B/ADR shares are held by institutional investors. 1.0% of KT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
KT has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, TELIA Co A B/ADR has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
KT beats TELIA Co A B/ADR on 8 of the 15 factors compared between the two stocks.
KT Corporation provides telecommunications services in Korea and internationally. The company offers local, domestic long-distance, and international long-distance fixed-line and voice over Internet protocol fixed-line telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services, including IPTV services; and data communication services, such as leased line and broadband Internet connection services to institutional customers. It also provides mobile voice and data telecommunications, credit card processing and other financial, and satellite TV and media content services. In addition, the company offers information technology and network services. Further, it plans and develops commercial and office buildings and condominiums, as well as leases buildings; maintains public telephones; manages sports groups; develops medicine and pharmacy; and sells communication devices. Additionally, the company offers security, B2C and B2B, investment fund, software development and data processing, Internet banking ASP and security, value added network, system integration and maintenance, mobile marketing, and PCS distribution services. It also provides TV content, residential building development and supply, asset management and consulting, cloud system, data center development, satellite communication, music contents investment, technology business finance, advertising agency, network installation and management, system integration and maintenance, foreign investment, electronic communication, and wireless high speed Internet services, as well as call center services for the financial sectors. As of December 31, 2017, the company served approximately 20,015,000 mobile subscribers and 7.5 million IPTV subscribers. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam, South Korea.
About TELIA Co A B/ADR
Telia Company AB (publ) provides network access, telecommunications, and other services primarily in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Mexico. It offers mobile, broadband, TV, and fixed-line services to businesses, individuals, families, and communities. The company also develops and maintains fiber and cable networks; and provides international carrier, cloud, identity and access rights management, ICT, smart public transport, and customer financing services, as well as IT equipment and services. In addition, it engages in the wholesale of IP transit, Ethernet, IPX, and cloud connect products for Internet service providers, and content and cloud providers. The company markets its products and services under the Telia, Call me, DLG Tele, Diil, Activ, Telia Cloudy, LMT, Okarte, Amigo, Ezys, Chess, OneCall, MyCall, OneCall, Phonero, and Halebop brands, as well as Cygate, DataInfo, Telia Finance, and Skanova brands. It has 16.7 million mobile subscriptions, 2.2 million fixed voice subscriptions, 2.5 million broadband subscriptions, and 1.7 million TV subscriptions. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is headquartered in Solna, Sweden.
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