TELUS (NYSE:TU) and Koninklijke KPN (OTCMKTS:KKPNF) Head to Head Analysis

TELUS (NYSE:TU) and Koninklijke KPN (OTCMKTS:KKPNF) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS	$14.88 billion	1.61	$724.69 million	$0.46	33.88
Koninklijke KPN	$6.10 billion	3.04	$917.62 million	$0.20	23.85

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

Insider and Institutional Ownership

49.4% of TELUS shares are held by institutional investors. 0.1% of TELUS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for TELUS and Koninklijke KPN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS	0	6	1	0	2.14
Koninklijke KPN	0	2	0	1	2.67

TELUS presently has a consensus target price of $21.50, suggesting a potential upside of 37.95%. Given TELUS’s higher probable upside, research analysts plainly believe TELUS is more favorable than Koninklijke KPN.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TELUS	4.67%	9.10%	2.59%
Koninklijke KPN	14.34%	23.15%	6.49%

Risk & Volatility

TELUS has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Summary

TELUS beats Koninklijke KPN on 8 of the 15 factors compared between the two stocks.

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. The Digitally-Led Customer Experiences segment provides digital customer experience and digital-enablement transformation solutions, including artificial intelligence and content management solutions. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was incorporated in 1998 and is based in Vancouver, Canada.

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.