KT (NYSE:KT) and Lumen Technologies (NYSE:LUMN) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares KT and Lumen Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| KT | N/A | N/A | N/A |
| Lumen Technologies | 6.05% | 12.10% | 2.55% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for KT and Lumen Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| KT | 0 | 1 | 0 | 0 | 2.00 |
| Lumen Technologies | 1 | 3 | 2 | 0 | 2.17 |
Lumen Technologies has a consensus price target of $11.5167, indicating a potential downside of 9.39%. Given Lumen Technologies' stronger consensus rating and higher possible upside, analysts plainly believe Lumen Technologies is more favorable than KT.
Valuation and Earnings
This table compares KT and Lumen Technologies' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| KT | $20.72 billion | 0.30 | $519.29 million | $1.07 | 11.91 |
| Lumen Technologies | $22.40 billion | 0.62 | $-5,269,000,000.00 | $1.32 | 9.63 |
KT has higher earnings, but lower revenue than Lumen Technologies. Lumen Technologies is trading at a lower price-to-earnings ratio than KT, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
26.2% of KT shares are held by institutional investors. Comparatively, 78.6% of Lumen Technologies shares are held by institutional investors. 1.0% of KT shares are held by insiders. Comparatively, 0.6% of Lumen Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
KT has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Lumen Technologies has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Summary
Lumen Technologies beats KT on 11 of the 14 factors compared between the two stocks.
