Reviewing Turkcell Iletisim Hizmetleri AS (NYSE:TKC) & KDDI (OTCMKTS:KDDIY)

KDDI (OTCMKTS:KDDIY) and Turkcell Iletisim Hizmetleri AS (NYSE:TKC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for KDDI and Turkcell Iletisim Hizmetleri AS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KDDI	1	0	0	0	1.00
Turkcell Iletisim Hizmetleri AS	0	1	0	0	2.00

Dividends

KDDI pays an annual dividend of $0.35 per share and has a dividend yield of 2.0%. Turkcell Iletisim Hizmetleri AS pays an annual dividend of $0.17 per share and has a dividend yield of 3.0%. KDDI pays out 27.8% of its earnings in the form of a dividend. Turkcell Iletisim Hizmetleri AS pays out 45.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares KDDI and Turkcell Iletisim Hizmetleri AS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KDDI	$38.86 billion	1.86	$4.53 billion	$1.26	13.73
Turkcell Iletisim Hizmetleri AS	$185.12 billion	0.03	$717.47 million	$0.37	15.23

KDDI has higher earnings, but lower revenue than Turkcell Iletisim Hizmetleri AS. KDDI is trading at a lower price-to-earnings ratio than Turkcell Iletisim Hizmetleri AS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares KDDI and Turkcell Iletisim Hizmetleri AS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KDDI	N/A	N/A	N/A
Turkcell Iletisim Hizmetleri AS	13.15%	7.00%	3.59%

Risk & Volatility

KDDI has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Turkcell Iletisim Hizmetleri AS has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Summary

Turkcell Iletisim Hizmetleri AS beats KDDI on 8 of the 13 factors compared between the two stocks.

About KDDI

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.

About Turkcell Iletisim Hizmetleri AS

Turkcell Iletisim Hizmetleri A.S. provides digital services in Turkey, Ukraine, Belarus, Turkish Republic of Northern Cyprus, and the Netherlands. It operates through Turkcell Turkey, Turkcell International, and Techfin segments. It offers work contact services, such as mobile communications, fixed business internet and business phone, and customer loyalty and programs; digital business services comprising uninterrupted access, cyber security, data center, Internet of Things, big data, e-transformation, technologies, and managed services, and cloud solutions. It also provides various devices, hardware, software, and financing solutions; and digital services, including search, invoice, and TL services, as well as information, entertainment, and application services. In addition, the company offers TV+, a television platform; fizy, a digital music platform; YaaniMail, a local e-mail service; GAME+; Iste Suit; BiP; smart legal documentation automation; Chatbot; and home internet and TV services. Turkcell Iletisim Hizmetleri A.S. was incorporated in 1993 and is headquartered in Istanbul, Turkey.