Critical Analysis: Vonage (VG) and Koninklijke KPN (KKPNF)

Vonage (NYSE:VG) and Koninklijke KPN (OTCMKTS:KKPNF) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

This table compares Vonage and Koninklijke KPN’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vonage $1.00 billion 2.18 -$33.93 million $0.28 32.64
Koninklijke KPN $7.34 billion 1.62 $545.93 million $0.12 23.54



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

Risk & Volatility

Vonage has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Vonage -1.22% 17.66% 10.22%
Koninklijke KPN N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Vonage and Koninklijke KPN, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vonage 0 1 6 0 2.86
Koninklijke KPN 0 0 0 0 N/A

Vonage presently has a consensus price target of $15.20, indicating a potential upside of 66.30%. Given Vonage’s higher possible upside, equities analysts plainly believe Vonage is more favorable than Koninklijke KPN.

Insider & Institutional Ownership

85.1% of Vonage shares are held by institutional investors. 8.7% of Vonage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Vonage beats Koninklijke KPN on 9 of the 13 factors compared between the two stocks.

About Vonage

Vonage Holdings Corp. provides communications services connecting people through cloud-connected devices worldwide. It offers various business services, including basic dial tone, call queue, conferencing, call groups, mobile functionality, CRM integration, and detailed analytics, as well as Vonage Business Cloud and Vonage Enterprise services. The company also provides home telephone services through various service plans with basic features, such as voicemail, call waiting, call forwarding, simulring, visual voicemail, and extensions, as well as area code selection, virtual phone number, and Web-enabled voicemail. Its primary home telephone offerings include Vonage World plan that offers unlimited domestic calling; calling to landline phones in approximately 60 countries; and calling to mobile phones in various countries, as well as Vonage North America plan for unlimited calling across the United States, Canada, Mexico, and Puerto Rico. In addition, the company provides Vonage-enabled devices, which allow customers to use the Internet connection for their computer and telephones at the same time; and high-speed broadband Internet service that allows calls over the Internet either from a telephone through a Vonage-enabled device, or through soft phone software, or mobile client applications. It sells its products through its sales agents, Websites, toll free numbers, and retailers for consumers and businesses in the United States, the United Kingdom, and Canada. As of December 31, 2017, it had approximately 2.2 million consumer subscriber lines and business seats. The company was incorporated in 2000 and is headquartered in Holmdel, New Jersey.

About Koninklijke KPN

Koninklijke KPN N.V. provides telecommunications, and information and communication technology (ICT) services in the Netherlands, the Americas, and internationally. It offers fixed and mobile telephony, broadband Internet, and television services to retail consumers; and network related ICT solutions to business customers, as well as operates an IP-based infrastructure for international wholesale customers. The company also provides services in the areas of communication, information, entertainment, and commercial sectors; and a range of end-to-end solutions in infrastructure, workspace management, cloud, security, data network, and data center services for small, medium-sized, and large enterprises. In addition, it offers connectivity solutions to fixed and mobile wholesale partners; and voice termination and data services for fixed and mobile operators, as well as voice-over-broadband. Koninklijke KPN N.V. was founded in 1852 and is based in The Hague, the Netherlands.

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