IDT (NYSE:IDT) and Koninklijke KPN (OTCMKTS:KKPNY) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
This is a breakdown of recent ratings and target prices for IDT and Koninklijke KPN, as provided by MarketBeat.com.
IDT pays an annual dividend of $0.09 per share and has a dividend yield of 1.2%. Koninklijke KPN pays an annual dividend of $0.15 per share and has a dividend yield of 5.0%.
Institutional and Insider Ownership
38.4% of IDT shares are held by institutional investors. Comparatively, 0.1% of Koninklijke KPN shares are held by institutional investors. 22.5% of IDT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
IDT has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.
This table compares IDT and Koninklijke KPN’s net margins, return on equity and return on assets.
Earnings and Valuation
This table compares IDT and Koninklijke KPN’s gross revenue, earnings per share and valuation.
Koninklijke KPN has higher revenue and earnings than IDT.
IDT beats Koninklijke KPN on 6 of the 11 factors compared between the two stocks.
IDT Corporation operates primarily in the telecommunications and payment industries in the United States and internationally. The company operates in two segments, Telecom & Payment Services, and net2phone-Unified Communications as a Service. The Telecom & Payment Services Services segment offers retail telecommunication products, including international long-distance calling products primarily to foreign-born communities; wholesale international long distance traffic termination services for tier 1 fixed line and mobile network operators, as well as for other service providers; and payment offerings, such as international and domestic airtime top-up, domestic bill payment, and international money transfer services. The net2phone-Unified Communications as a Service segment provides voice over Internet protocol products and services under the net2phone brand name, including cloud-based private branch exchange (PBX) services to enterprise customers primarily through value-added resellers, service providers, telecom agents, and managed service providers; session initiation protocol trunking services, which support inbound and outbound domestic and international calling from an IP PBX; and cable telephony services. The company is also involved in the provision of offers local/long distance residential phone services under the brand name IDT America. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey.
About Koninklijke KPN
Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It offers fixed and mobile telephony, broadband Internet, and television services to retail consumers; network related IT solutions to business customers; and wholesale network services to third parties. The company provides services in the areas of communication, information, entertainment, and commercial services; a range of end-to-end solutions in infrastructure, workspace management, and security cloud services for small, medium-sized, and large corporate enterprises; and connectivity solutions to fixed and mobile wholesale partners. It also offers cyber security services; specialized VPN and network solutions; and various IT services to the healthcare and public sector. In addition, the company provides Internet hosting services, such as domain registration, shared hosting, VPS, email hosting, Office 365, and online storage services; wide area network and local area network services; colocation services through its data centers; and cloud, security, alert systems, and monitoring services, as well as delivers managed voice, video, and chat services to its business clients based on Microsoft's Skype for Business software. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.