Array Digital Infrastructure (NYSE:AD – Get Free Report) and Koninklijke KPN (OTCMKTS:KKPNF – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
18.0% of Array Digital Infrastructure shares are owned by institutional investors. 0.1% of Array Digital Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Array Digital Infrastructure and Koninklijke KPN, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Array Digital Infrastructure | 0 | 3 | 3 | 0 | 2.50 |
| Koninklijke KPN | 0 | 1 | 0 | 1 | 3.00 |
Valuation and Earnings
This table compares Array Digital Infrastructure and Koninklijke KPN”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Array Digital Infrastructure | $162.96 million | 20.22 | $48.76 million | $6.20 | 6.14 |
| Koninklijke KPN | $6.59 billion | 2.84 | $967.35 million | $0.26 | 18.50 |
Koninklijke KPN has higher revenue and earnings than Array Digital Infrastructure. Array Digital Infrastructure is trading at a lower price-to-earnings ratio than Koninklijke KPN, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Array Digital Infrastructure and Koninklijke KPN’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Array Digital Infrastructure | 250.79% | 8.52% | 4.15% |
| Koninklijke KPN | 15.09% | 26.07% | 7.10% |
Volatility and Risk
Array Digital Infrastructure has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.
Summary
Array Digital Infrastructure beats Koninklijke KPN on 8 of the 15 factors compared between the two stocks.
About Array Digital Infrastructure
United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.
About Koninklijke KPN
Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and mobile telephony, fixed and mobile broadband internet, and television services to retail and business consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, including cloud, workspace, and cybersecurity services; interconnect traffic, visitor roaming, and digital products; and NL-ix, an interconnect exchange, as well as sells handsets, peripheral equipment, and software licenses. In addition, the company offers virus and malware scanners; anti-virus licenses; 1Password, a password management tool; DNSSEC, a technology that prevents customers from being led to fake websites; KPN Veilig Netwerk Thuis, a smart network security; Censornet, which includes web security, cloud application security broker, email protection, and awareness training; SuperVision, which provides digital governance solutions for workspaces; and OneMonitoring to ensure early detection of cyber incidents. Further, it provides fiber networks; and IT services for integrating healthcare systems and optimizing communication between healthcare providers. The company distributes its products and services under the KPN, XS4ALL, Simyo, KPN Security, KPN Health, Solcon, Inspark, and KPN Partner Network brands. The company was formerly known as Koninklijke PTT Nederland NV and changed its name to Koninklijke KPN N.V. in June 1998. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.
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