Analyzing KT Corporation (KT) and Verizon Communications (VZ)
KT Corporation (NYSE: KT) and Verizon Communications (NYSE:VZ) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Insider & Institutional Ownership
23.3% of KT Corporation shares are owned by institutional investors. Comparatively, 62.3% of Verizon Communications shares are owned by institutional investors. 1.0% of KT Corporation shares are owned by company insiders. Comparatively, 0.1% of Verizon Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
KT Corporation has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Verizon Communications has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
This table compares KT Corporation and Verizon Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for KT Corporation and Verizon Communications, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Verizon Communications has a consensus price target of $52.87, indicating a potential upside of 8.61%. Given Verizon Communications’ higher possible upside, analysts clearly believe Verizon Communications is more favorable than KT Corporation.
Verizon Communications pays an annual dividend of $2.31 per share and has a dividend yield of 4.7%. KT Corporation does not pay a dividend. Verizon Communications pays out 59.2% of its earnings in the form of a dividend. KT Corporation has raised its dividend for 10 consecutive years.
Valuation and Earnings
This table compares KT Corporation and Verizon Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|KT Corporation||$20.51 billion||0.43||$3.92 billion||N/A||N/A|
|Verizon Communications||$123.64 billion||1.61||$43.95 billion||$3.90||12.48|
Verizon Communications has higher revenue and earnings than KT Corporation.
Verizon Communications beats KT Corporation on 11 of the 16 factors compared between the two stocks.
KT Corporation Company Profile
KT Corporation is a telecommunications service provider. The Company’s segments include the Customer/Marketing Group, the Finance Business Group and the Others Group. The Customer/Marketing Group segment is engaged in providing various telecommunication services to individual/home/corporate customers and the convergence business. The Finance Business Group segment is engaged in providing various financial services, such as credit card. The Others Group segment includes security services, satellite service, information technology and network services, and satellite television services, as well as global business services, which provide global network services to multinational or domestic corporate customers and telecommunications companies. The Company’s principal services include mobile voice and data telecommunications services; fixed-line services; credit card processing and other financial services, and various other services.
Verizon Communications Company Profile
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video, data center and cloud services, security and managed network services, and local and long distance voice services. The Company has combined Yahoo! Inc.’s operating assets with its existing AOL Inc. business to create a new subsidiary, Oath Inc., owns a diverse house of more than 50 media and technology brands. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail.
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