Head to Head Analysis: Telenor ASA (OTCMKTS:TELNF) versus Koninklijke KPN (OTCMKTS:KKPNF)

Koninklijke KPN (OTCMKTS:KKPNF) and Telenor ASA (OTCMKTS:TELNF) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares Koninklijke KPN and Telenor ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke KPN	15.09%	26.07%	7.10%
Telenor ASA	N/A	N/A	N/A

Institutional & Insider Ownership

17.3% of Telenor ASA shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Koninklijke KPN and Telenor ASA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke KPN	0	1	0	1	3.00
Telenor ASA	0	0	0	0	0.00

Valuation & Earnings

This table compares Koninklijke KPN and Telenor ASA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke KPN	$6.59 billion	2.80	$967.35 million	$0.26	18.27
Telenor ASA	N/A	N/A	N/A	$4.39	3.26

Koninklijke KPN has higher revenue and earnings than Telenor ASA. Telenor ASA is trading at a lower price-to-earnings ratio than Koninklijke KPN, indicating that it is currently the more affordable of the two stocks.

Summary

Koninklijke KPN beats Telenor ASA on 7 of the 9 factors compared between the two stocks.

About Koninklijke KPN

Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and mobile telephony, fixed and mobile broadband internet, and television services to retail and business consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, including cloud, workspace, and cybersecurity services; interconnect traffic, visitor roaming, and digital products; and NL-ix, an interconnect exchange, as well as sells handsets, peripheral equipment, and software licenses. In addition, the company offers virus and malware scanners; anti-virus licenses; 1Password, a password management tool; DNSSEC, a technology that prevents customers from being led to fake websites; KPN Veilig Netwerk Thuis, a smart network security; Censornet, which includes web security, cloud application security broker, email protection, and awareness training; SuperVision, which provides digital governance solutions for workspaces; and OneMonitoring to ensure early detection of cyber incidents. Further, it provides fiber networks; and IT services for integrating healthcare systems and optimizing communication between healthcare providers. The company distributes its products and services under the KPN, XS4ALL, Simyo, KPN Security, KPN Health, Solcon, Inspark, and KPN Partner Network brands. The company was formerly known as Koninklijke PTT Nederland NV and changed its name to Koninklijke KPN N.V. in June 1998. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.

About Telenor ASA

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. It operates through four segments: Nordics, Asia, Infrastructure, and Amp. The company offers mobile subscriptions and handsets, telephony, broadband, data security, communications services, and TV services to residential and business customers, as well as wholesale services. It also builds, develops, maintains, and leases passive telecom infrastructure, such as towers, masts, and buildings. The company also provides machine-to-machine, internet-of-things, and inbound and national roaming services. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.