Spark New Zealand (OTCMKTS:SPKKY) and Koninklijke KPN (OTCMKTS:KKPNY) are both utilities companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Institutional and Insider Ownership
0.3% of Spark New Zealand shares are owned by institutional investors. Comparatively, 0.1% of Koninklijke KPN shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Spark New Zealand and Koninklijke KPN’s net margins, return on equity and return on assets.
This is a breakdown of current recommendations for Spark New Zealand and Koninklijke KPN, as provided by MarketBeat.
Risk and Volatility
Spark New Zealand has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.
Spark New Zealand pays an annual dividend of $0.56 per share and has a dividend yield of 4.2%. Koninklijke KPN pays an annual dividend of $0.08 per share and has a dividend yield of 2.9%. Spark New Zealand pays out 68.3% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Spark New Zealand and Koninklijke KPN’s gross revenue, earnings per share and valuation.
Koninklijke KPN has higher revenue and earnings than Spark New Zealand.
About Spark New Zealand
Spark New Zealand Limited, together with its subsidiaries, provides telecommunications, and information and communications technology (ICT) products and services primarily in New Zealand. The company's Spark Home, Mobile & Business segment offers a range of services and content, data, and voice services across fiber, wireless, and copper broadband, mobile, online video entertainment, and nationwide Wi-Fi zones to consumer and small business customers. Its Spark Digital segment integrates IT and telecommunications services to provide converged ICT solutions for clients. The company's Spark Connect & Platforms segment engages in the Spark's network and IT operations, shared business operations, and digital and service transformation activities. Its Spark Ventures & Wholesale segment develops a portfolio of businesses; and engages in the servicing and stewardship of Spark's wholesale products and services. The company also offers IT infrastructure, business cloud, business telecommunications, outsourced telecommunications, subscription video-on-demand, big data analytics and marketing automation, IT infrastructure and data center, and international wholesale telecommunications services. In addition, it provides local, national, and international telephone and data services; and retails telecommunications products and services. The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. Spark New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.
About Koninklijke KPN
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.