TIM (NYSE:TIMB – Get Free Report) and KT (NYSE:KT – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Valuation and Earnings
This table compares TIM and KT’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TIM | $4.17 billion | N/A | $323.63 million | $0.64 | 23.67 |
| KT | $19.85 billion | 0.29 | $882.33 million | $1.79 | 6.89 |
KT has higher revenue and earnings than TIM. KT is trading at a lower price-to-earnings ratio than TIM, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
Analyst Ratings
This is a summary of recent recommendations for TIM and KT, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TIM | 0 | 1 | 2 | 0 | 2.67 |
| KT | 0 | 2 | 0 | 0 | 2.00 |
TIM currently has a consensus price target of $17.00, suggesting a potential upside of 12.21%. Given TIM’s stronger consensus rating and higher probable upside, equities research analysts plainly believe TIM is more favorable than KT.
Volatility and Risk
TIM has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, KT has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Dividends
TIM pays an annual dividend of $0.63 per share and has a dividend yield of 4.2%. KT pays an annual dividend of $0.61 per share and has a dividend yield of 4.9%. TIM pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KT pays out 34.1% of its earnings in the form of a dividend. KT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares TIM and KT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TIM | 8.85% | 8.38% | 3.80% |
| KT | 4.46% | 6.63% | 2.94% |
Summary
TIM beats KT on 8 of the 15 factors compared between the two stocks.
About TIM
TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers ultra-broadband, digital content, and tailored packages services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is founded in 2013 and is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.
About KT
KT Corporation provides integrated telecommunications and platform services in Korea and internationally. The company offers 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, South Korea.
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