KDDI (OTCMKTS:KDDIY) and PLDT (NYSE:PHI) Critical Review

KDDI (OTCMKTS:KDDIY) and PLDT (NYSE:PHI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Dividends

KDDI pays an annual dividend of $0.34 per share and has a dividend yield of 1.9%. PLDT pays an annual dividend of $1.19 per share and has a dividend yield of 5.3%. KDDI pays out 33.7% of its earnings in the form of a dividend. PLDT pays out 45.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

KDDI has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, PLDT has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares KDDI and PLDT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KDDI	$38.86 billion	1.93	$4.53 billion	$1.01	17.74
PLDT	$3.79 billion	1.29	$565.37 million	$2.59	8.73

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

Insider & Institutional Ownership

0.1% of KDDI shares are held by institutional investors. Comparatively, 2.3% of PLDT shares are held by institutional investors. 0.7% of PLDT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KDDI	10.71%	10.87%	4.03%
PLDT	14.67%	28.96%	5.44%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KDDI	0	0	0	1	4.00
PLDT	1	0	0	0	1.00

Summary

PLDT beats KDDI on 8 of the 15 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 PLDT

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.