Cellcom Israel (OTCMKTS:CELJF) versus KT (NYSE:KT) Financial Comparison

KT (NYSE:KT) and Cellcom Israel (OTCMKTS:CELJF) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KT	2.40%	3.67%	1.61%
Cellcom Israel	3.89%	7.32%	2.64%

Institutional & Insider Ownership

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

Analyst Recommendations

This is a summary of recent ratings and price targets for KT and Cellcom Israel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KT	0	0	2	1	3.33
Cellcom Israel	1	0	0	0	1.00

Earnings and Valuation

This table compares KT and Cellcom Israel”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KT	$19.37 billion	0.53	$321.90 million	$0.74	26.74
Cellcom Israel	$1.20 billion	N/A	$46.74 million	$0.24	32.92

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

Risk and Volatility

KT has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Cellcom Israel has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Summary

KT beats Cellcom Israel on 8 of the 13 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 Cellcom Israel

Cellcom Israel Ltd. provides cellular communications services in Israel. It operates in two segments, Cellular and Fixed-line. The Cellular segment offers cellular communications, and cellular equipment and related services. The Fixed-line segment provides infrastructure and internet access, internet-based television, international telephony, landline telephony services, and transmission services for business customers and for telecommunication operators; and conferencing, cloud computing, and server hosting services, as well as IOT solutions. This segment also sells equipment, such as computers and communication equipment, including servers, routers, and switches, and others; and software and integration of information security products. The company was incorporated in 1994 and is headquartered in Netanya, Israel.