BT Group (BT) and Koninklijke KPN (OTCMKTS:KKPNF) Critical Analysis
Koninklijke KPN (OTCMKTS:KKPNF) and BT Group (NYSE:BT) are both large-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
This is a summary of current ratings and recommmendations for Koninklijke KPN and BT Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Koninklijke KPN and BT Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
0.8% of BT Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
BT Group pays an annual dividend of $1.31 per share and has a dividend yield of 8.1%. Koninklijke KPN does not pay a dividend. BT Group pays out 70.8% of its earnings in the form of a dividend. BT Group has raised its dividend for 6 consecutive years.
Earnings and Valuation
This table compares Koninklijke KPN and BT Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Koninklijke KPN||$7.34 billion||1.43||$545.93 million||$0.12||20.83|
|BT Group||$31.46 billion||1.02||$2.70 billion||$1.85||8.75|
BT Group has higher revenue and earnings than Koninklijke KPN. BT Group is trading at a lower price-to-earnings ratio than Koninklijke KPN, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Koninklijke KPN has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, BT Group has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
BT Group beats Koninklijke KPN on 10 of the 14 factors compared between the two stocks.
Koninklijke KPN Company Profile
Koninklijke KPN N.V. provides telecommunications, and information and communication technology (ICT) services in the Netherlands, the Americas, and internationally. It offers fixed and mobile telephony, broadband Internet, and television services to retail consumers; and network related ICT solutions to business customers, as well as operates an IP-based infrastructure for international wholesale customers. The company also provides services in the areas of communication, information, entertainment, and commercial sectors; and a range of end-to-end solutions in infrastructure, workspace management, cloud, security, data network, and data center services for small, medium-sized, and large enterprises. In addition, it offers connectivity solutions to fixed and mobile wholesale partners; and voice termination and data services for fixed and mobile operators, as well as voice-over-broadband. Koninklijke KPN N.V. was founded in 1852 and is based in The Hague, the Netherlands.
BT Group Company Profile
BT Group plc provides communications services worldwide. Its Consumer segment sells telephones, baby monitors, and Wi-Fi extenders through high street retailers, online BT Shop, and Website BT.com; and offers home phone, copper and fiber broadband, TV, and mobile services in various packages. The company's EE segment offers 2G, 3G, and 4G mobile network services; broadband, fixed-voice, and TV services; and postpaid and prepaid plans, and emergency services network. This segment also sells 4G mobile phones, tablets, connected devices, and mobile broadband devices from various manufacturers. Its Business and Public Sector segment provides fixed voice, mobility, fiber and connectivity, and networked IT services to retailers, utilities, public sector, healthcare, sports, construction, finance, and educational sectors. The company's Global Services segment offers business communications and ICT services comprising BT Connect, BT Security, BT One, BT Contact, BT Compute, BT Advise, and BT for financial markets. This segment serves approximately 5,500 customers in 180 countries. Its Wholesale and Ventures segment enables communications providers and other organizations to provide fixed or mobile phone services. Its ventures provide mass-market services, such as directory enquiries and payphones; and enterprise services comprising BT Fleet and BT Redcare. This segment also provides broadband and Ethernet, voice, hosted communication, mobile virtual network operator, managed solutions, machine-to-machine, roaming, and media services. The company's Openreach segment engages in the provision of services over the local access network; and installation and maintenance of fiber and copper communications networks that connect homes and businesses. The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.
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