KT (NYSE: KT) and BCE (NYSE:BCE) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Institutional & Insider Ownership
23.7% of KT shares are held by institutional investors. Comparatively, 44.5% of BCE shares are held by institutional investors. 1.0% of KT shares are held by insiders. Comparatively, 0.2% of BCE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares KT and BCE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for KT and BCE, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BCE has a consensus target price of $56.75, suggesting a potential upside of 22.17%. Given BCE’s stronger consensus rating and higher possible upside, analysts clearly believe BCE is more favorable than KT.
Valuation and Earnings
This table compares KT and BCE’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|KT||$19.13 billion||0.41||$637.52 million||N/A||N/A|
|BCE||$16.40 billion||2.55||$2.29 billion||$2.46||18.88|
BCE has lower revenue, but higher earnings than KT.
BCE pays an annual dividend of $2.23 per share and has a dividend yield of 4.8%. KT does not pay a dividend. BCE pays out 90.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
KT has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, BCE has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
BCE beats KT on 10 of the 14 factors compared between the two stocks.
KT 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.
BCE Company Profile
BCE Inc. is a communications company. The Company’s segments include Bell Wireless, Bell Wireline and Bell Media. Its Bell Wireless segment provides wireless voice and data communications products and services to its residential, small and medium-sized business and large enterprise customers across Canada. Its Bell Wireline segment provides data, including Internet access and Internet protocol television (IPTV), local telephone, long distance, as well as other communications services and products to its residential, small and medium-sized business and large enterprise customers, primarily in Ontario, Quebec and the Atlantic provinces, while Satellite television (TV) service and connectivity to business customers are available nationally across Canada. Its Bell Media segment provides conventional, specialty and pay Television, digital media, and radio broadcasting services and out of home (OOH) advertising services to customers across Canada.
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