NTT (OTCMKTS:NTTYY – Get Free Report) and Koninklijke KPN (OTCMKTS:KKPNF – Get Free Report) are both large-cap communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Earnings & Valuation
This table compares NTT and Koninklijke KPN”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NTT | $95.72 billion | 0.89 | $6.84 billion | $2.09 | 12.48 |
| Koninklijke KPN | $6.59 billion | 2.95 | $967.35 million | $0.26 | 19.21 |
NTT has higher revenue and earnings than Koninklijke KPN. NTT is trading at a lower price-to-earnings ratio than Koninklijke KPN, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NTT and Koninklijke KPN’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NTT | 6.29% | 9.10% | 1.97% |
| Koninklijke KPN | 15.20% | 26.34% | 7.17% |
Insider & Institutional Ownership
0.1% of NTT shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
NTT has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for NTT and Koninklijke KPN, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NTT | 0 | 1 | 0 | 1 | 3.00 |
| Koninklijke KPN | 0 | 1 | 0 | 1 | 3.00 |
Summary
Koninklijke KPN beats NTT on 6 of the 10 factors compared between the two stocks.
About NTT
Nippon Telegraph and Telephone Corporation operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. The Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers consulting, system and software development, network system, cloud, global data center, and related services. The Others segment engages in the real estate, energy, and other businesses. The company was founded in 1952 and is headquartered in Tokyo, Japan.
About Koninklijke KPN
Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and mobile telephony, fixed and mobile broadband internet, and television services to retail and business consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, including cloud, workspace, and cybersecurity services; interconnect traffic, visitor roaming, and digital products; and NL-ix, an interconnect exchange, as well as sells handsets, peripheral equipment, and software licenses. In addition, the company offers virus and malware scanners; anti-virus licenses; 1Password, a password management tool; DNSSEC, a technology that prevents customers from being led to fake websites; KPN Veilig Netwerk Thuis, a smart network security; Censornet, which includes web security, cloud application security broker, email protection, and awareness training; SuperVision, which provides digital governance solutions for workspaces; and OneMonitoring to ensure early detection of cyber incidents. Further, it provides fiber networks; and IT services for integrating healthcare systems and optimizing communication between healthcare providers. The company distributes its products and services under the KPN, XS4ALL, Simyo, KPN Security, KPN Health, Solcon, Inspark, and KPN Partner Network brands. The company was formerly known as Koninklijke PTT Nederland NV and changed its name to Koninklijke KPN N.V. in June 1998. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.
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