Verizon Communications (NYSE:VZ) and Koninklijke KPN (OTCMKTS:KKPNY) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Verizon Communications and Koninklijke KPN, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verizon Communications 0 6 15 0 2.71
Koninklijke KPN 0 1 1 0 2.50

Verizon Communications currently has a consensus target price of $55.28, indicating a potential upside of 0.69%. Given Verizon Communications’ stronger consensus rating and higher possible upside, equities analysts clearly believe Verizon Communications is more favorable than Koninklijke KPN.

Earnings & Valuation

This table compares Verizon Communications and Koninklijke KPN’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verizon Communications $126.03 billion 1.80 $30.10 billion $3.74 14.68
Koninklijke KPN $7.34 billion 1.59 $545.93 million N/A N/A

Verizon Communications has higher revenue and earnings than Koninklijke KPN.

Insider and Institutional Ownership

64.1% of Verizon Communications shares are held by institutional investors. 0.1% of Verizon Communications shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Verizon Communications pays an annual dividend of $2.41 per share and has a dividend yield of 4.4%. Koninklijke KPN pays an annual dividend of $0.08 per share and has a dividend yield of 2.9%. Verizon Communications pays out 64.4% of its earnings in the form of a dividend. Verizon Communications has increased its dividend for 11 consecutive years. Verizon Communications is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Verizon Communications and Koninklijke KPN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verizon Communications 23.88% 38.62% 6.65%
Koninklijke KPN N/A N/A N/A

Risk and Volatility

Verizon Communications has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.

Summary

Verizon Communications beats Koninklijke KPN on 14 of the 15 factors compared between the two stocks.

About Verizon Communications

Verizon Communications Inc., through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company's Wireless segment provides wireless voice and data services; Internet access on various notebook computers and tablets; multimedia, business-focused, and location-based services, as well as international travel services; and network access services to deliver various Internet of Things products and services. This segment also provides wireless devices, including smartphones and basic phones, wearables, and tablets and other Internet access devices. As of December 31, 2017, it had 116.3 million retail connections. Its Wireline segment offers traditional circuit-based network products and services; networking solutions, comprising private Internet protocol (IP), Ethernet, and software-defined wide area network, as well as cyber security services; local exchange, regional, long distance, and toll-free calling services; voice messaging and conferencing services; and workforce productivity and customer contact center solutions, as well as residential fixed connectivity solutions, including Internet, TV, and voice services under the Fios brand name. This segment also provides premises equipment, as well as installation, maintenance, and site services; data, voice, local dial tone, and broadband services primarily to local, long distance, and wireless carriers; voice and networking products, Fios services, IP networking, voice solutions, security, and managed information technology services for small and medium businesses, state and local governments, and educational institutions; and security and managed network services. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is headquartered in New York, New York.

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.

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