Critical Contrast: Swisscom (OTCMKTS:SCMWY) & Koninklijke KPN (OTCMKTS:KKPNF)

Koninklijke KPN (OTCMKTS:KKPNF) and Swisscom (OTCMKTS:SCMWY) are both large-cap multi-sector conglomerates companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Koninklijke KPN and Swisscom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koninklijke KPN 0 0 0 0 N/A
Swisscom 1 2 0 0 1.67

Risk and Volatility

Koninklijke KPN has a beta of -0.31, meaning that its share price is 131% less volatile than the S&P 500. Comparatively, Swisscom has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares Koninklijke KPN and Swisscom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Koninklijke KPN N/A N/A N/A
Swisscom 13.03% 18.74% 6.66%

Valuation and Earnings

This table compares Koninklijke KPN and Swisscom’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Koninklijke KPN $7.34 billion 1.77 $545.93 million N/A N/A
Swisscom $11.98 billion 2.19 $1.56 billion $3.01 16.78

Swisscom has higher revenue and earnings than Koninklijke KPN.

Institutional & Insider Ownership

0.1% of Swisscom shares are held by institutional investors. 1.0% of Swisscom shares are held by insiders. 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.

Dividends

Swisscom pays an annual dividend of $1.84 per share and has a dividend yield of 3.6%. Koninklijke KPN does not pay a dividend. Swisscom pays out 61.1% of its earnings in the form of a dividend.

Summary

Swisscom beats Koninklijke KPN on 10 of the 11 factors compared between the two stocks.

Koninklijke KPN Company Profile

Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It offers fixed and mobile telephony, broadband Internet, and television services to retail consumers; network related IT solutions to business customers; and wholesale network services to third parties. The company provides services in the areas of communication, information, entertainment, and commercial services; a range of end-to-end solutions in infrastructure, workspace management, and security cloud services for small, medium-sized, and large corporate enterprises; and connectivity solutions to fixed and mobile wholesale partners. It also offers cyber security services; specialized VPN and network solutions; and various IT services to the healthcare and public sector. In addition, the company provides Internet hosting services, such as domain registration, shared hosting, VPS, email hosting, Office 365, and online storage services; wide area network and local area network services; colocation services through its data centers; and cloud, security, alert systems, and monitoring services, as well as delivers managed voice, video, and chat services to its business clients based on Microsoft's Skype for Business software. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.

Swisscom Company Profile

Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. The company operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. It offers broadband, TV, fixed-network, and mobile phone subscription services, as well as national and international telephone, and data traffic services for residential customers, and small and medium-sized enterprises. The company also provides cloud, outsourcing, workplace, UCC, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, it plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband services, such as voice, data, and TV services, as well as video-on-demand for residential and corporate customers. Further, the company provides mobile phone services; IT and network services, and customized solutions; and online and telephone directories, as well as sells merchandise products. Additionally, it offers collection services for radio and TV license fees; and cross-platform retail media and security communication services, as well as constructs and maintains wired and wireless networks. Swisscom AG was founded in 1998 and is headquartered in Bern, Switzerland.

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