Financial Review: Liberty Global (NASDAQ:LBTYA) vs. Koninklijke KPN (OTCMKTS:KKPNY)

Liberty Global (NASDAQ:LBTYA – Get Free Report) and Koninklijke KPN (OTCMKTS:KKPNY – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility and Risk

Liberty Global has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Liberty Global and Koninklijke KPN, as reported by MarketBeat.com.

Liberty Global currently has a consensus price target of $15.00, indicating a potential upside of 37.74%. Given Liberty Global’s stronger consensus rating and higher probable upside, research analysts clearly believe Liberty Global is more favorable than Koninklijke KPN.

Valuation & Earnings

This table compares Liberty Global and Koninklijke KPN”s revenue, earnings per share (EPS) and valuation.

Liberty Global has higher earnings, but lower revenue than Koninklijke KPN.

Insider and Institutional Ownership

37.2% of Liberty Global shares are owned by institutional investors. 13.3% of Liberty Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Summary

Liberty Global beats Koninklijke KPN on 7 of the 12 factors compared between the two stocks.

About Liberty Global

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Liberty Global Ltd., together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as WiFi features, security, anti-virus, firewall, spam protection, smart home services, online storage solutions, and web spaces; and Connect Box that delivers in-home Wi-Fi service. The company provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; Horizon 5, a cloud-based, multi-screen entertainment platform that combines linear television, including recording and replay features and video-on-demand services; Horizon Go, an online mobile app; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home offices, small businesses, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in Belgium, Switzerland, Ireland, Slovakia, and internationally. Liberty Global Ltd. was founded in 2004 and is based in Hamilton, Bermuda.

About Koninklijke KPN

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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.