Critical Survey: GTT Communications (OTCMKTS:GTTN) versus Koninklijke KPN (OTCMKTS:KKPNF)

Koninklijke KPN (OTCMKTS:KKPNF) and GTT Communications (OTCMKTS:GTTN) are both multi-sector conglomerates companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Koninklijke KPN and GTT Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke KPN	0	0	0	0	N/A
GTT Communications	0	0	0	0	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke KPN	$5.93 billion	N/A	$913.46 million	$0.20	21.09
GTT Communications	$1.73 billion	0.00	-$105.90 million	N/A	N/A

Koninklijke KPN has higher revenue and earnings than GTT Communications.

Institutional and Insider Ownership

45.6% of GTT Communications shares are owned by institutional investors. 46.4% of GTT Communications shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Koninklijke KPN has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, GTT Communications has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Koninklijke KPN and GTT Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke KPN	14.95%	23.14%	6.64%
GTT Communications	N/A	N/A	N/A

Summary

Koninklijke KPN beats GTT Communications on 5 of the 8 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 GTT Communications

GTT Communications, Inc. engages in the provision of cloud networking services to multinational clients. It offers broad portfolio of global services including private networking; Internet; optical transport; Software Defined Wide Area Networking; managed services; voice and unified communications; video transport; and access services. The company was founded by H. Brian Thompson on January 3, 2005 and is headquartered in McLean, VA.