KT (NYSE:KT) and Centurylink (NYSE:CTL) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Insider & Institutional Ownership
31.9% of KT shares are owned by institutional investors. Comparatively, 77.3% of Centurylink shares are owned by institutional investors. 1.0% of KT shares are owned by company insiders. Comparatively, 0.6% of Centurylink shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares KT and Centurylink's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| KT | N/A | N/A | N/A |
| Centurylink | 5.50% | 10.70% | 2.24% |
Dividends
KT pays an annual dividend of $0.37 per share and has a dividend yield of 3.8%. Centurylink pays an annual dividend of $1.00 per share and has a dividend yield of 10.2%. KT pays out 34.6% of its earnings in the form of a dividend. Centurylink pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KT has increased its dividend for 3 consecutive years.
Volatility and Risk
KT has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Centurylink has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for KT and Centurylink, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| KT | 0 | 1 | 1 | 0 | 2.50 |
| Centurylink | 6 | 5 | 2 | 0 | 1.69 |
KT presently has a consensus target price of $14.10, indicating a potential upside of 44.17%. Centurylink has a consensus target price of $10.3167, indicating a potential upside of 5.27%. Given KT's stronger consensus rating and higher probable upside, equities analysts clearly believe KT is more favorable than Centurylink.
Valuation & Earnings
This table compares KT and Centurylink's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| KT | $20.72 billion | 0.23 | $519.29 million | $1.07 | 9.14 |
| Centurylink | $22.40 billion | 0.48 | $-5,269,000,000.00 | $1.32 | 7.42 |
KT has higher earnings, but lower revenue than Centurylink. Centurylink is trading at a lower price-to-earnings ratio than KT, indicating that it is currently the more affordable of the two stocks.
Summary
Centurylink beats KT on 10 of the 17 factors compared between the two stocks.
