Analyzing Koninklijke KPN (OTCMKTS:KKPNY) and Crexendo (NASDAQ:CXDO)

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

Dividends

Koninklijke KPN pays an annual dividend of $0.08 per share and has a dividend yield of 2.8%. Crexendo pays an annual dividend of $0.02 per share and has a dividend yield of 1.0%. Crexendo pays out -13.3% of its earnings in the form of a dividend.

Risk and Volatility

Koninklijke KPN has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Valuation & Earnings

This table compares Koninklijke KPN and Crexendo’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Koninklijke KPN $7.24 billion 1.64 $1.52 billion N/A N/A
Crexendo $28.09 million 1.70 -$2.44 million ($0.15) -14.00

Koninklijke KPN has higher revenue and earnings than Crexendo.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Koninklijke KPN and Crexendo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koninklijke KPN 0 1 7 1 3.00
Crexendo 0 0 3 0 3.00

Koninklijke KPN currently has a consensus target price of $3.60, indicating a potential upside of 27.10%. Crexendo has a consensus target price of $5.00, indicating a potential upside of 138.10%. Given Crexendo’s higher possible upside, analysts plainly believe Crexendo is more favorable than Koninklijke KPN.

Profitability

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

Net Margins Return on Equity Return on Assets
Koninklijke KPN N/A N/A N/A
Crexendo -9.72% -1.54% -1.33%

Institutional & Insider Ownership

8.5% of Crexendo shares are owned by institutional investors. 60.0% of Crexendo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Koninklijke KPN beats Crexendo on 8 of the 14 factors compared between the two stocks.

About Koninklijke KPN

(Get Rating)

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 consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, includes cloud and workspace, and cybersecurity; and interconnect traffic, visitor roaming, digital products, and NL-ix, an interconnect exchange, as well as sells handsets and peripheral equipment, and software licenses. The company was founded in 1881 and is headquartered in Rotterdam, the Netherlands.

About Crexendo

(Get Rating)

Crexendo, Inc. provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally. It operates through two segments, Cloud Telecommunications and Web Services. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and resells broadband Internet services. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Web Services segment provides website hosting and other professional services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is headquartered in Tempe, Arizona.

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