Reviewing Deutsche Telekom (OTCMKTS:DTEGY) & Koninklijke KPN (OTCMKTS:KKPNY)

Koninklijke KPN (OTCMKTS:KKPNY) and Deutsche Telekom (OTCMKTS:DTEGY) are both large-cap utilities 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.

Analyst Recommendations

This is a summary of recent recommendations for Koninklijke KPN and Deutsche Telekom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke KPN	0	1	0	0	2.00
Deutsche Telekom	0	2	1	1	2.75

Volatility and Risk

Koninklijke KPN has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Dividends

Koninklijke KPN pays an annual dividend of $0.13 per share and has a dividend yield of 2.9%. Deutsche Telekom pays an annual dividend of $1.88 per share and has a dividend yield of 6.0%. Deutsche Telekom pays out 69.6% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Koninklijke KPN and Deutsche Telekom”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke KPN	$6.10 billion	2.85	$917.62 million	N/A	N/A
Deutsche Telekom	$125.29 billion	1.23	$12.13 billion	$2.70	11.64

Deutsche Telekom has higher revenue and earnings than Koninklijke KPN.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koninklijke KPN	N/A	N/A	N/A
Deutsche Telekom	10.67%	10.14%	3.25%

Summary

Deutsche Telekom beats Koninklijke KPN on 10 of the 12 factors compared between the two stocks.

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.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.