KDDI (OTCMKTS:KDDIY) vs. SoftBank Group (OTCMKTS:SFTBY) Head to Head Analysis

SoftBank Group (OTCMKTS:SFTBY) and KDDI (OTCMKTS:KDDIY) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SoftBank Group and KDDI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoftBank Group	0	1	2	0	2.67
KDDI	0	1	0	0	2.00

Profitability

This table compares SoftBank Group and KDDI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoftBank Group	41.42%	20.96%	6.65%
KDDI	N/A	N/A	N/A

Risk and Volatility

SoftBank Group has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, KDDI has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Dividends

SoftBank Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. KDDI pays an annual dividend of $0.35 per share and has a dividend yield of 2.0%. SoftBank Group pays out 1.4% of its earnings in the form of a dividend. KDDI pays out 27.8% 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.

Insider and Institutional Ownership

0.0% of SoftBank Group shares are held by institutional investors. Comparatively, 0.1% of KDDI shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares SoftBank Group and KDDI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoftBank Group	$47.57 billion	3.53	$7.71 billion	$7.28	8.08
KDDI	$38.86 billion	1.67	$4.53 billion	$1.26	13.56

SoftBank Group has higher revenue and earnings than KDDI. SoftBank Group is trading at a lower price-to-earnings ratio than KDDI, indicating that it is currently the more affordable of the two stocks.

Summary

SoftBank Group beats KDDI on 11 of the 14 factors compared between the two stocks.

About SoftBank Group

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; ICT services products to enterprise customers; and communication device-related products and IoT equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux / OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.

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.