Contrasting KDDI (OTCMKTS:KDDIY) & TeliaSonera (OTCMKTS:TLSNY)

KDDI (OTCMKTS:KDDIY) and TeliaSonera (OTCMKTS:TLSNY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Risk and Volatility

KDDI has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500. Comparatively, TeliaSonera has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for KDDI and TeliaSonera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KDDI	0	1	0	0	2.00
TeliaSonera	0	2	0	2	3.00

Institutional and Insider Ownership

0.1% of KDDI shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KDDI	N/A	N/A	N/A
TeliaSonera	4.35%	8.90%	2.57%

Valuation & Earnings

This table compares KDDI and TeliaSonera”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KDDI	$38.86 billion	1.73	$4.53 billion	$1.26	14.01
TeliaSonera	$8.28 billion	N/A	$360.26 million	$0.18	54.83

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

Dividends

KDDI pays an annual dividend of $0.35 per share and has a dividend yield of 2.0%. TeliaSonera pays an annual dividend of $0.22 per share and has a dividend yield of 2.2%. KDDI pays out 27.8% of its earnings in the form of a dividend. TeliaSonera pays out 122.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TeliaSonera beats KDDI on 8 of the 13 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 TeliaSonera

Telia Company AB (publ) provides communication services to businesses, individuals, families, and communities in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. It offers mobile, broadband, television, and fixed-line services; and networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, and colocation solutions. The company also provides IoT connectivity, building monitoring, smart public transport, and smart utilities, as well as transport and logistics solutions comprising connected vehicle, asset tracking, and fleet management services. It markets its products and services under the Telia, Telia Cygate, TV4, C More, Halebop, Fello, MTV, Phonero, Onecall, MyCall, CallMe, MIT Tele, Ezys, Diil, Super, and Imt brand names for transport and logistics, public transport, manufacturing, retail, utilities, buildings and real estate, and public sector industries. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is based in Solna, Sweden.