KT (NYSE:KT – Get Free Report) and TIM (NYSE:TIMB – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.
Insider & Institutional Ownership
21.8% of KT shares are held by institutional investors. Comparatively, 3.1% of TIM shares are held by institutional investors. 1.0% of KT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
KT has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, TIM has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KT | $19.85 billion | 0.29 | $882.33 million | $1.79 | 6.89 |
| TIM | $4.17 billion | N/A | $323.63 million | $0.64 | 23.67 |
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.
Dividends
KT pays an annual dividend of $0.61 per share and has a dividend yield of 4.9%. TIM pays an annual dividend of $0.63 per share and has a dividend yield of 4.2%. KT pays out 34.1% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of current ratings and price targets for KT and TIM, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KT | 0 | 2 | 0 | 0 | 2.00 |
| TIM | 0 | 1 | 2 | 0 | 2.67 |
TIM has a consensus target price of $17.00, indicating a potential upside of 12.21%. Given TIM’s stronger consensus rating and higher possible upside, analysts plainly believe TIM is more favorable than KT.
Profitability
This table compares KT and TIM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KT | 4.46% | 6.63% | 2.94% |
| TIM | 8.85% | 8.38% | 3.80% |
Summary
TIM beats KT on 8 of the 15 factors compared between the two stocks.
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.
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.
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