Financial Comparison: Koninklijke KPN (OTCMKTS:KKPNF) and Array Digital Infrastructure (NYSE:AD)

Koninklijke KPN (OTCMKTS:KKPNF) and Array Digital Infrastructure (NYSE:AD) 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, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Koninklijke KPN and Array Digital Infrastructure, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke KPN	0	1	0	1	3.00
Array Digital Infrastructure	0	3	3	0	2.50

Array Digital Infrastructure has a consensus price target of $47.40, indicating a potential upside of 24.79%. Given Array Digital Infrastructure’s higher probable upside, analysts clearly believe Array Digital Infrastructure is more favorable than Koninklijke KPN.

Insider and Institutional Ownership

18.0% of Array Digital Infrastructure shares are held by institutional investors. 0.1% of Array Digital Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koninklijke KPN	15.09%	26.07%	7.10%
Array Digital Infrastructure	250.79%	8.52%	4.15%

Risk & Volatility

Koninklijke KPN has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Array Digital Infrastructure has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares Koninklijke KPN and Array Digital Infrastructure”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke KPN	$6.59 billion	2.84	$967.35 million	$0.26	18.54
Array Digital Infrastructure	$213.53 million	15.39	$48.76 million	$6.20	6.13

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

Summary

Array Digital Infrastructure beats Koninklijke KPN on 8 of the 15 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 Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.