Telefonica Brasil (NYSE: VIV) and KT Corporation (NYSE:KT) are both mid-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
10.0% of Telefonica Brasil shares are held by institutional investors. Comparatively, 24.1% of KT Corporation shares are held by institutional investors. 1.0% of KT Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Telefonica Brasil and KT Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Telefonica Brasil||$13.46 billion||2.05||$4.42 billion||$0.74||22.12|
|KT Corporation||$20.88 billion||0.34||$4.11 billion||N/A||N/A|
Telefonica Brasil has higher revenue, but lower earnings than KT Corporation.
This is a breakdown of recent ratings and recommmendations for Telefonica Brasil and KT Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Telefonica Brasil currently has a consensus price target of $15.00, suggesting a potential downside of 8.37%. Given Telefonica Brasil’s higher probable upside, analysts plainly believe Telefonica Brasil is more favorable than KT Corporation.
This table compares Telefonica Brasil and KT Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Telefonica Brasil has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, KT Corporation has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.
Telefonica Brasil pays an annual dividend of $0.55 per share and has a dividend yield of 3.4%. KT Corporation does not pay a dividend. Telefonica Brasil pays out 74.3% of its earnings in the form of a dividend. KT Corporation has increased its dividend for 4 consecutive years.
Telefonica Brasil Company Profile
Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.
KT Corporation Company Profile
KT Corporation is a telecommunications service provider. The Company’s segments include the Customer/Marketing Group, the Finance Business Group and the Others Group. The Customer/Marketing Group segment is engaged in providing various telecommunication services to individual/home/corporate customers and the convergence business. The Finance Business Group segment is engaged in providing various financial services, such as credit card. The Others Group segment includes security services, satellite service, information technology and network services, and satellite television services, as well as global business services, which provide global network services to multinational or domestic corporate customers and telecommunications companies. The Company’s principal services include mobile voice and data telecommunications services; fixed-line services; credit card processing and other financial services, and various other services.
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