Kyivstar Group (NASDAQ:KYIV) vs. SoftBank Group (OTCMKTS:SFTBY) Critical Analysis

SoftBank Group (OTCMKTS:SFTBY) and Kyivstar Group (NASDAQ:KYIV) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares SoftBank Group and Kyivstar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoftBank Group	62.60%	26.38%	8.87%
Kyivstar Group	12.73%	24.71%	15.12%

Institutional and Insider Ownership

0.0% of SoftBank Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares SoftBank Group and Kyivstar Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoftBank Group	$51.81 billion	3.56	$33.01 billion	$2.83	5.71
Kyivstar Group	$1.16 billion	2.68	$124.00 million	$0.66	20.32

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SoftBank Group and Kyivstar Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoftBank Group	1	3	5	0	2.44
Kyivstar Group	0	2	3	0	2.60

Kyivstar Group has a consensus price target of $16.62, suggesting a potential upside of 23.97%. Given Kyivstar Group’s stronger consensus rating and higher probable upside, analysts clearly believe Kyivstar Group is more favorable than SoftBank Group.

Summary

SoftBank Group beats Kyivstar Group on 8 of the 12 factors compared between the two stocks.

About SoftBank Group

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; ICT services products to enterprise customers; and communication device-related products and IoT equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux / OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.

About Kyivstar Group

Kyivstar Group Ltd. provides a range of mobile communication and home Internet services in Ukraine. It offers mobile services, such as voice, messaging and data, mobile and computer Internet, roaming, abroad calling, payment, and other services; fixed telephone communication services; fixed Internet and data transfer services; and mobile virtual PBX services, as well as operates data centers, commercial contact centers, and M2M contact centers. The company also provides loyalty programs, as well as sells telecommunications equipment. The company was founded in 1994 and is based in Dubai, the United Arab Emirates. Kyivstar Group Ltd. operates as a subsidiary of Vimpelcom Amsterdam B.V.