Telephone & Data Systems (TDS) & Koninklijke KPN (KKPNF) Critical Comparison
Telephone & Data Systems (NYSE:TDS) and Koninklijke KPN (OTCMKTS:KKPNF) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Telephone & Data Systems pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Koninklijke KPN does not pay a dividend. Telephone & Data Systems pays out 120.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Telephone & Data Systems has increased its dividend for 43 consecutive years.
This is a summary of current ratings for Telephone & Data Systems and Koninklijke KPN, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Telephone & Data Systems||1||0||3||0||2.50|
Telephone & Data Systems presently has a consensus target price of $36.50, suggesting a potential upside of 22.40%. Given Telephone & Data Systems’ higher possible upside, equities analysts clearly believe Telephone & Data Systems is more favorable than Koninklijke KPN.
Insider and Institutional Ownership
81.7% of Telephone & Data Systems shares are owned by institutional investors. 16.3% of Telephone & Data Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Telephone & Data Systems and Koninklijke KPN’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Telephone & Data Systems||$5.04 billion||0.66||$153.00 million||$0.53||56.26|
|Koninklijke KPN||$7.34 billion||1.48||$545.93 million||$0.12||21.50|
Koninklijke KPN has higher revenue and earnings than Telephone & Data Systems. Koninklijke KPN is trading at a lower price-to-earnings ratio than Telephone & Data Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Telephone & Data Systems has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
This table compares Telephone & Data Systems and Koninklijke KPN’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Telephone & Data Systems||3.53%||1.98%||1.05%|
Telephone & Data Systems beats Koninklijke KPN on 12 of the 16 factors compared between the two stocks.
Telephone & Data Systems Company Profile
Telephone and Data Systems, Inc., a telecommunications company, provides wireless, wireline, cable, and hosted and managed services in the United States. The company offers cellular services, such as postpaid national plans and prepaid service plans with voice, messaging, and data usage options; and business rate plans. It also offers wireless devices comprising handsets, tablets, mobile hotspots, home phones, and routers; and including accessories, including wireless basics, such as cases, screen protectors, chargers, and memory cards, as well as an assortment of consumer electronics comprising headphones, speakers, wearables, and home automation products. In addition, the company provides wireline and cable broadband services; digital television (TV) and digital satellite TV video services; voice services comprising local and long-distance telephone, voice over Internet protocol, find me follow me, collaboration, instant messaging, and other services; and network access services. Further, it offers a range of information technology (IT) services, including colocation, cloud and hosting solutions, managed services, and enterprise resource planning application management services; sells IT hardware, as well as provides related maintenance and professional services; and engages in planning, engineering, procurement, sale, installation, and management of IT-infrastructure solutions. Additionally, the company operates retail stores and kiosks. The company serves approximately 5.1 million wireless customers and 1.2 million wireline and cable customers. Telephone and Data Systems, Inc. sells its products through retail sales, direct sales, third-party retailers, and independent agents, as well as through Website and telesales. The company was founded in 1968 and is headquartered in Chicago, Illinois.
Koninklijke KPN Company Profile
Koninklijke KPN N.V. provides telecommunications, and information and communication technology (ICT) services in the Netherlands, the Americas, and internationally. It offers fixed and mobile telephony, broadband Internet, and television services to retail consumers; and network related ICT solutions to business customers, as well as operates an IP-based infrastructure for international wholesale customers. The company also provides services in the areas of communication, information, entertainment, and commercial sectors; and a range of end-to-end solutions in infrastructure, workspace management, cloud, security, data network, and data center services for small, medium-sized, and large enterprises. In addition, it offers connectivity solutions to fixed and mobile wholesale partners; and voice termination and data services for fixed and mobile operators, as well as voice-over-broadband. Koninklijke KPN N.V. was founded in 1852 and is based in The Hague, the Netherlands.
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