KDDI (OTCMKTS:KDDIY – Get Free Report) and uCloudlink Group (NASDAQ:UCL – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for KDDI and uCloudlink Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KDDI | 0 | 1 | 0 | 1 | 3.00 |
| uCloudlink Group | 2 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
0.1% of KDDI shares are held by institutional investors. Comparatively, 85.5% of uCloudlink Group shares are held by institutional investors. 54.6% of uCloudlink Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KDDI | $40.34 billion | 1.93 | $4.67 billion | $1.26 | 15.41 |
| uCloudlink Group | $78.42 million | 0.18 | $6.30 million | ($0.01) | -37.00 |
KDDI has higher revenue and earnings than uCloudlink Group. uCloudlink Group is trading at a lower price-to-earnings ratio than KDDI, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
KDDI has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, uCloudlink Group has a beta of 4.14, indicating that its share price is 314% more volatile than the S&P 500.
Profitability
This table compares KDDI and uCloudlink Group’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 |
| uCloudlink Group | -0.31% | -0.88% | -0.37% |
Summary
KDDI beats uCloudlink Group on 10 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 uCloudlink Group
uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.
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