TALKTALK TELECO/ADR (OTCMKTS:TKTCY) and KT (NYSE:KT) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Earnings and Valuation
This table compares TALKTALK TELECO/ADR and KT’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TALKTALK TELECO/ADR||$1.99 billion||0.78||$194.52 million||$0.34||20.00|
|KT||$20.28 billion||0.31||$560.71 million||$1.69||7.66|
Institutional and Insider Ownership
23.3% of KT shares are owned by institutional investors. 1.0% of KT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
TALKTALK TELECO/ADR has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, KT has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.
This table compares TALKTALK TELECO/ADR and KT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for TALKTALK TELECO/ADR and KT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TALKTALK TELECO/ADR pays an annual dividend of $0.11 per share and has a dividend yield of 1.6%. KT pays an annual dividend of $0.51 per share and has a dividend yield of 3.9%. TALKTALK TELECO/ADR pays out 32.4% of its earnings in the form of a dividend. KT pays out 30.2% 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. KT has raised its dividend for 1 consecutive years. KT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
KT beats TALKTALK TELECO/ADR on 12 of the 14 factors compared between the two stocks.
About TALKTALK TELECO/ADR
TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.
KT Corp. engages in the provision of integrated telecommunication services. The company operates through the Customer and Marketing businesses. Its services include wire and wireless phones, internet, and other communication. The company was founded on December 20, 1981 and is headquartered in Seongnam-si, South Korea.
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