Financial Comparison: LICT (OTCMKTS:LICT) and Koninklijke KPN (OTCMKTS:KKPNF)

Koninklijke KPN (OTCMKTS:KKPNF) and LICT (OTCMKTS:LICT) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koninklijke KPN	15.10%	26.25%	7.27%
LICT	6.88%	N/A	N/A

Volatility and Risk

Koninklijke KPN has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, LICT has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke KPN	$6.59 billion	2.74	$967.12 million	$0.26	17.85
LICT	$141.40 million	1.65	$12.19 million	$627.00	18.66

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Koninklijke KPN and LICT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke KPN	0	1	0	1	3.00
LICT	0	0	0	0	0.00

Summary

Koninklijke KPN beats LICT on 9 of the 11 factors compared between the two stocks.

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.

About LICT

LICT Corporation, together with its subsidiaries, provides broadband, voice, and video services to residential, commercial, and governmental customers. The company offers high speed broadband services, including internet access through copper-based digital subscriber lines, fiber optic facilities, fixed wireless, and cable modems; video services through traditional cable television services and internet protocol television services; voice over internet protocol services; wireless voice communications services; and other telecommunications related services. It operates in California, Iowa, Kansas, Michigan, New Mexico, Utah, and Wisconsin. The company was formerly known as Lynch Interactive Corporation and changed its name to LICT Corporation in March 2007. LICT Corporation was incorporated in 1996 and is based in Rye, New York.