Analyzing Koninklijke KPN (OTCMKTS:KKPNF) & Axtel SAB (OTCMKTS:AXTLF)

Axtel SAB (OTCMKTS:AXTLF) and Koninklijke KPN (OTCMKTS:KKPNF) are both utilities 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 Axtel SAB and Koninklijke KPN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axtel SAB	0	1	0	0	2.00
Koninklijke KPN	0	1	0	1	3.00

Given Axtel SAB’s higher probable upside, analysts clearly believe Axtel SAB is more favorable than Koninklijke KPN.

Volatility and Risk

Axtel SAB has a beta of 3.23, indicating that its share price is 223% more volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Earnings & Valuation

This table compares Axtel SAB and Koninklijke KPN”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axtel SAB	N/A	N/A	N/A	N/A	N/A
Koninklijke KPN	$6.59 billion	3.01	$917.62 million	$0.24	21.27

Koninklijke KPN has higher revenue and earnings than Axtel SAB.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Axtel SAB	N/A	N/A	N/A
Koninklijke KPN	14.72%	24.84%	6.88%

Summary

Koninklijke KPN beats Axtel SAB on 6 of the 8 factors compared between the two stocks.

About Axtel SAB

AXTEL SAB de CV engages in the provision of public telecommunication services. It operates through the following segments: Business Operation and Government. The Business Operation segment offers communication services and value-added services, such as information, data and internet technologies for both local and international businesses. The Government segment provides services through the company’s network and infrastructure for the federal, state and municipal governments. The company was founded on July 22, 1994 and is headquartered in San Pedro Garza Garcia, Mexico.

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.