KT (NYSE:KT) versus Deutsche Telekom (OTCMKTS:DTEGY) Head-To-Head Review

Deutsche Telekom (OTCMKTS:DTEGY) and KT (NYSE:KT) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Valuation and Earnings

This table compares Deutsche Telekom and KT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deutsche Telekom	$134.70 billion	1.18	$10.87 billion	$2.07	15.67
KT	$28,186.52 billion	0.00	$1.20 billion	$2.26	8.10

Deutsche Telekom has higher earnings, but lower revenue than KT. KT is trading at a lower price-to-earnings ratio than Deutsche Telekom, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Deutsche Telekom	7.18%	11.11%	3.52%
KT	5.51%	8.04%	3.63%

Insider and Institutional Ownership

18.9% of KT shares are held by institutional investors. 1.0% of KT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Deutsche Telekom has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, KT has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Deutsche Telekom and KT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deutsche Telekom	0	2	2	0	2.50
KT	0	3	0	0	2.00

KT has a consensus target price of $23.08, indicating a potential upside of 26.02%. Given KT’s higher probable upside, analysts plainly believe KT is more favorable than Deutsche Telekom.

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.

About KT

KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technology; fixed-line telephone services, including local, domestic long-distance, international long-distance, and voice over Internet protocol telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as fixed-line and leased line services, as well as broadband Internet connection services. It also provides media and content services, including IPTV, satellite TV, digital music, e-commerce, online advertising consulting, and web comics and novels services; and credit card processing and other financial services. In addition, the company offers information technology and network services, and satellite services; sells handsets and miscellaneous telecommunications equipment; develops and sells residential units and commercial real estate; and rents real estate properties. Further, it maintains public telephones; offers security, B2C and B2B, investment fund, software development and data processing, value added network, call center, system integration and maintenance, marketing, PCS distribution, truck transportation and trucking arrangement business, cloud system implementation, satellite communication network, installation and management, and data center development and related services. Additionally, the company is involved in the Internet banking ASP and security solutions, residential building development and supply, sports team management, technology business finance, and submarine cable construction and maintenance businesses. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam-si, South Korea.