KT (KT) & Sprint (S) Head to Head Contrast

KT (NYSE:KT) and Sprint (NYSE:S) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares KT and Sprint’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KT $21.05 billion 0.35 $415.40 million $0.88 17.02
Sprint $32.41 billion 0.76 $7.39 billion $0.07 87.57

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

Institutional and Insider Ownership

31.8% of KT shares are owned by institutional investors. Comparatively, 13.0% of Sprint shares are owned by institutional investors. 1.0% of KT shares are owned by company insiders. Comparatively, 0.4% of Sprint shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for KT and Sprint, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KT 2 3 0 0 1.60
Sprint 2 10 2 0 2.00

Sprint has a consensus price target of $5.50, indicating a potential downside of 10.28%. Given Sprint’s stronger consensus rating and higher probable upside, analysts plainly believe Sprint is more favorable than KT.

Profitability

This table compares KT and Sprint’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
Sprint 23.12% 1.36% 0.43%

Dividends

KT pays an annual dividend of $0.39 per share and has a dividend yield of 2.6%. Sprint does not pay a dividend. KT pays out 44.3% of its earnings in the form of a dividend.

Volatility and Risk

KT has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Sprint has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Summary

Sprint beats KT on 12 of the 16 factors compared between the two stocks.

About KT

KT Corporation provides telecommunications services in Korea and internationally. The company offers local, domestic long-distance, and international long-distance fixed-line and voice over Internet protocol fixed-line telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services, including IPTV services; and data communication services, such as leased line and broadband Internet connection services to institutional customers. It also provides mobile voice and data telecommunications, credit card processing and other financial, and satellite TV and media content services. In addition, the company offers information technology and network services. Further, it plans and develops commercial and office buildings and condominiums, as well as leases buildings; maintains public telephones; manages sports groups; develops medicine and pharmacy; and sells communication devices. Additionally, the company offers security, B2C and B2B, investment fund, software development and data processing, Internet banking ASP and security, value added network, system integration and maintenance, mobile marketing, and PCS distribution services. It also provides TV content, residential building development and supply, asset management and consulting, cloud system, data center development, satellite communication, music contents investment, technology business finance, advertising agency, network installation and management, system integration and maintenance, foreign investment, electronic communication, and wireless high speed Internet services, as well as call center services for the financial sectors. As of December 31, 2017, the company served approximately 20,015,000 mobile subscribers and 7.5 million IPTV subscribers. 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, South Korea.

About Sprint

Sprint Corporation, together with its subsidiaries, provides various wireless and wireline communications products and services to consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. It operates in two segments, Wireless and Wireline. The Wireless segment offers wireless data communication services, including mobile productivity applications, such as Internet access, messaging, and email services; wireless photo and video offerings; location-based capabilities comprising asset and fleet management, dispatch services, and navigation tools; and mobile entertainment applications. It also provides wireless voice communications services that include local and long-distance wireless voice services, as well as voicemail, call waiting, three-way calling, caller identification, and call forwarding services. In addition, this segment offers voice and data services internationally through roaming arrangements; and customized wireless services to large companies and government agencies, as well as sells handsets, tablets, and hotspots. The Wireline segment provides wireline voice and data communications, which comprises domestic and international data communications using various protocols, including multiprotocol label switching technologies, Internet protocol (IP), managed network services, Voice over IP, session initiated protocol, and traditional voice services to other communications companies and targeted business subscribers. Sprint Corporation offers its services under the Sprint, Boost Mobile, Virgin Mobile, and Assurance Wireless brands. The company was founded in 1899 and is headquartered in Overland Park, Kansas. Sprint Corporation is a subsidiary of SoftBank Group Corp.

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