KT (NYSE:KT) & Telesat (NASDAQ:TSAT) Head-To-Head Analysis

KT (NYSE:KT) and Telesat (NASDAQ:TSAT) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for KT and Telesat, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KT	0	2	1	0	2.33
Telesat	2	3	3	0	2.12

KT currently has a consensus target price of $23.08, indicating a potential upside of 36.61%. Telesat has a consensus target price of $33.50, indicating a potential downside of 29.30%. Given KT’s stronger consensus rating and higher possible upside, analysts plainly believe KT is more favorable than Telesat.

Earnings and Valuation

This table compares KT and Telesat”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KT	$19.88 billion	0.41	$1.20 billion	$1.86	9.08
Telesat	$299.12 million	2.41	-$111.19 million	($17.89)	-2.65

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

Profitability

This table compares KT and Telesat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KT	4.72%	6.45%	2.93%
Telesat	-102.62%	-15.53%	-3.95%

Institutional & Insider Ownership

18.9% of KT shares are owned by institutional investors. 1.0% of KT shares are owned by company insiders. Comparatively, 40.6% of Telesat shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

KT has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Telesat has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500.

Summary

KT beats Telesat on 10 of the 14 factors compared between the two stocks.

About KT

KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers mobile voice and data telecommunications services based on 5G, 4G LTE and 3G W-CDMA technology; fixed-line telephone services, including local, domestic long-distance, international long-distance, and voice over Internet protocol telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as fixed-line and leased line services, as well as broadband Internet connection services. It also provides media and content services, including IPTV, satellite TV, digital music, e-commerce, online advertising consulting, and web comics and novels services; and credit card processing and other financial services. In addition, the company offers information technology and network services, and satellite services; sells handsets and miscellaneous telecommunications equipment; develops and sells residential units and commercial real estate; and rents real estate properties. Further, it maintains public telephones; offers security, B2C and B2B, investment fund, software development and data processing, value added network, call center, system integration and maintenance, marketing, PCS distribution, truck transportation and trucking arrangement business, cloud system implementation, satellite communication network, installation and management, and data center development and related services. Additionally, the company is involved in the Internet banking ASP and security solutions, residential building development and supply, sports team management, technology business finance, and submarine cable construction and maintenance businesses. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam-si, South Korea.

About Telesat

Telesat Corporation, a satellite operator, provides mission-critical communications solutions to broadcast, enterprise, and consulting customers worldwide. The company’s satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers’ homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services that include satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services comprising space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; rural telephony to telecommunications carriers and network services integrators; and other satellite services. In addition, it offers direct-to-consumer broadband services; communications services for the oil and gas and mining industries; and broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels. Further, the company operates satellite and hybrid satellite/terrestrial networks. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, research and development, and satellite control services. The company offers its services primarily through a direct sales force. As of December 31, 2020, it operated a fleet of 15 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada. Telesat Corporation is a subsidiary of Loral Space & Communications Inc.