KT (NYSE:KT) vs. Telecom Italia (OTCMKTS:TIAIY) Financial Comparison

Telecom Italia (OTCMKTS:TIAIY) and KT (NYSE:KT) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Institutional and Insider Ownership

18.9% of KT shares are owned by institutional investors. 1.0% of KT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Telecom Italia and KT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Italia	0	0	0	0	0.00
KT	0	0	2	1	3.33

Earnings & Valuation

This table compares Telecom Italia and KT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Italia	$15.88 billion	N/A	-$660.08 million	N/A	N/A
KT	$19.37 billion	0.53	$321.90 million	$0.92	21.79

KT has higher revenue and earnings than Telecom Italia.

Profitability

This table compares Telecom Italia and KT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Italia	N/A	N/A	N/A
KT	2.37%	3.47%	1.52%

Risk and Volatility

Telecom Italia has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, KT has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Summary

KT beats Telecom Italia on 10 of the 11 factors compared between the two stocks.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.

About KT

KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technology; fixed-line telephone services, including local, domestic long-distance, international long-distance, and voice over Internet protocol telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as fixed-line and leased line services, as well as broadband Internet connection services. It also provides media and content services, including IPTV, satellite TV, digital music, e-commerce, online advertising consulting, and web comics and novels services; and credit card processing and other financial services. In addition, the company offers information technology and network services, and satellite services; sells handsets and miscellaneous telecommunications equipment; develops and sells residential units and commercial real estate; and rents real estate properties. Further, it maintains public telephones; offers security, B2C and B2B, investment fund, software development and data processing, value added network, call center, system integration and maintenance, marketing, PCS distribution, truck transportation and trucking arrangement business, cloud system implementation, satellite communication network, installation and management, and data center development and related services. Additionally, the company is involved in the Internet banking ASP and security solutions, residential building development and supply, sports team management, technology business finance, and submarine cable construction and maintenance businesses. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam-si, South Korea.