Head to Head Contrast: Koninklijke KPN (OTCMKTS:KKPNY) and VEON (NASDAQ:VEON)

VEON (NASDAQ:VEON) and Koninklijke KPN (OTCMKTS:KKPNY) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

21.3% of VEON shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for VEON and Koninklijke KPN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VEON	0	2	1	1	2.75
Koninklijke KPN	0	1	0	0	2.00

VEON currently has a consensus price target of $60.00, suggesting a potential upside of 11.06%. Given VEON’s stronger consensus rating and higher possible upside, equities analysts clearly believe VEON is more favorable than Koninklijke KPN.

Valuation & Earnings

This table compares VEON and Koninklijke KPN”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VEON	$4.00 billion	0.93	$415.00 million	$8.80	6.14
Koninklijke KPN	$6.10 billion	2.91	$917.62 million	N/A	N/A

Koninklijke KPN has higher revenue and earnings than VEON.

Profitability

This table compares VEON and Koninklijke KPN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VEON	15.26%	58.72%	10.13%
Koninklijke KPN	N/A	N/A	N/A

Volatility and Risk

VEON has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Summary

VEON beats Koninklijke KPN on 9 of the 12 factors compared between the two stocks.

About VEON

VEON Ltd., a digital operator, provides connectivity and internet services in Pakistan, Ukraine, Kazakhstan, Bangladesh, Uzbekistan, and Kyrgyzstan. It offers mobile telecommunications services, including value added and call completion, national and international roaming, wireless Internet access, mobile financial, and mobile bundle services; data connectivity, cross border transit, voice, Internet, and data services; fixed-line telecommunications using intercity fiber optic networks; and Internet-TV using Fiber to the building technology. The company also sells equipment, infrastructure, and accessories. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.

About Koninklijke KPN

Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and mobile telephony, fixed and mobile broadband internet, and television services to retail and business consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, including cloud, workspace, and cybersecurity services; interconnect traffic, visitor roaming, and digital products; and NL-ix, an interconnect exchange, as well as sells handsets, peripheral equipment, and software licenses. In addition, the company offers virus and malware scanners; anti-virus licenses; 1Password, a password management tool; DNSSEC, a technology that prevents customers from being led to fake websites; KPN Veilig Netwerk Thuis, a smart network security; Censornet, which includes web security, cloud application security broker, email protection, and awareness training; SuperVision, which provides digital governance solutions for workspaces; and OneMonitoring to ensure early detection of cyber incidents. Further, it provides fiber networks; and IT services for integrating healthcare systems and optimizing communication between healthcare providers. The company distributes its products and services under the KPN, XS4ALL, Simyo, KPN Security, KPN Health, Solcon, Inspark, and KPN Partner Network brands. The company was formerly known as Koninklijke PTT Nederland NV and changed its name to Koninklijke KPN N.V. in June 1998. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.