Financial Survey: KT (NYSE:KT) & Array Digital Infrastructure (NYSE:AD)

Array Digital Infrastructure (NYSE:AD) and KT (NYSE:KT) are both mid-cap communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Risk & Volatility

Array Digital Infrastructure has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, KT has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Array Digital Infrastructure and KT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Array Digital Infrastructure	1	2	3	0	2.33
KT	0	2	1	0	2.33

Array Digital Infrastructure presently has a consensus price target of $47.40, suggesting a potential upside of 41.41%. KT has a consensus price target of $23.08, suggesting a potential upside of 33.58%. Given Array Digital Infrastructure’s higher possible upside, equities analysts plainly believe Array Digital Infrastructure is more favorable than KT.

Valuation & Earnings

This table compares Array Digital Infrastructure and KT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Array Digital Infrastructure	$162.96 million	17.79	$48.76 million	$6.20	5.41
KT	$19.88 billion	0.42	$1.20 billion	$1.86	9.29

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

Institutional & Insider Ownership

18.0% of Array Digital Infrastructure shares are held by institutional investors. Comparatively, 18.9% of KT shares are held by institutional investors. 0.1% of Array Digital Infrastructure shares are held by insiders. Comparatively, 1.0% of KT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Array Digital Infrastructure and KT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Array Digital Infrastructure	250.79%	8.52%	4.15%
KT	4.72%	6.45%	2.93%

Summary

Array Digital Infrastructure beats KT on 7 of the 13 factors compared between the two stocks.

About Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.

About KT

KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technology; fixed-line telephone services, including local, domestic long-distance, international long-distance, and voice over Internet protocol telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as fixed-line and leased line services, as well as broadband Internet connection services. It also provides media and content services, including IPTV, satellite TV, digital music, e-commerce, online advertising consulting, and web comics and novels services; and credit card processing and other financial services. In addition, the company offers information technology and network services, and satellite services; sells handsets and miscellaneous telecommunications equipment; develops and sells residential units and commercial real estate; and rents real estate properties. Further, it maintains public telephones; offers security, B2C and B2B, investment fund, software development and data processing, value added network, call center, system integration and maintenance, marketing, PCS distribution, truck transportation and trucking arrangement business, cloud system implementation, satellite communication network, installation and management, and data center development and related services. Additionally, the company is involved in the Internet banking ASP and security solutions, residential building development and supply, sports team management, technology business finance, and submarine cable construction and maintenance businesses. 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-si, South Korea.