Contrasting KORE Group (NYSE:KORE) & Freenet (OTCMKTS:FRTAF)

Freenet (OTCMKTS:FRTAF) and KORE Group (NYSE:KORE) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Insider & Institutional Ownership

57.5% of KORE Group shares are owned by institutional investors. 33.5% of KORE Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Freenet has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, KORE Group has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Freenet and KORE Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freenet	10.04%	17.88%	7.85%
KORE Group	-27.37%	N/A	-18.41%

Analyst Ratings

This is a summary of recent recommendations and price targets for Freenet and KORE Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freenet	0	2	1	1	2.75
KORE Group	1	1	0	0	1.50

KORE Group has a consensus price target of $5.00, indicating a potential downside of 45.95%. Given KORE Group’s higher possible upside, analysts clearly believe KORE Group is more favorable than Freenet.

Valuation & Earnings

This table compares Freenet and KORE Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freenet	$2.76 billion	1.16	$306.95 million	$2.56	10.55
KORE Group	$279.62 million	0.58	-$62.98 million	($3.86)	-2.40

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

Summary

Freenet beats KORE Group on 11 of the 15 factors compared between the two stocks.

About Freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.

About KORE Group

KORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity and location-based services, device solutions, and managed and professional services that are used in the development and support of IoT technology for the business market. The company’s products include IoT connectivity-as-a-service; connectivity enablement-as-a-service; device management services; and security location based services. It serves customers in healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing sectors. KORE Group Holdings, Inc. was founded in 2002 and is headquartered in Atlanta, Georgia.