Comparing Macquarie Infrastructure (NYSE:MIC) and KPN (KKPNF)

Macquarie Infrastructure (NYSE: MIC) and KPN (OTCMKTS:KKPNF) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Profitability

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This table compares Macquarie Infrastructure and KPN’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macquarie Infrastructure 24.86% 4.83% 1.95%
KPN N/A N/A N/A

Dividends

Macquarie Infrastructure pays an annual dividend of $5.76 per share and has a dividend yield of 15.1%. KPN does not pay a dividend. Macquarie Infrastructure pays out 225.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macquarie Infrastructure has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of recent ratings and target prices for Macquarie Infrastructure and KPN, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macquarie Infrastructure 1 4 1 0 2.00
KPN 0 0 0 0 N/A

Macquarie Infrastructure presently has a consensus price target of $57.00, indicating a potential upside of 49.41%. Given Macquarie Infrastructure’s higher probable upside, analysts clearly believe Macquarie Infrastructure is more favorable than KPN.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Macquarie Infrastructure $1.81 billion 1.78 $451.20 million $2.56 14.90
KPN $7.53 billion 1.67 $877.53 million $0.08 37.50

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

Institutional & Insider Ownership

76.5% of Macquarie Infrastructure shares are held by institutional investors. 6.9% of Macquarie Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Macquarie Infrastructure has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, KPN has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Summary

Macquarie Infrastructure beats KPN on 12 of the 16 factors compared between the two stocks.

About Macquarie Infrastructure

Macquarie Infrastructure Corporation owns and operates a portfolio of businesses that provide services to other businesses, government agencies, and individuals. It operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP), and MIC Hawaii. The IMTT segment offers bulk liquid storage, handling, and other services for petroleum products, chemicals, renewable fuels, and vegetable and animal oils through a network of 19 marine terminals, including 17 in the United States and 2 in Canada. This segment also provides environmental emergency response, industrial, and waste transportation and disposal services. The Atlantic Aviation segment offers fuel delivery, de-icing, aircraft parking, and hangar rental services to owners/operators of jet aircraft, as well as for commercial, military, freight, and government aviation customers. The CP segment generates electricity through wind, solar, and gas-fired facilities. As of December 31, 2017, this segment had interests in 7 solar power generating facilities with an aggregate generating capacity of 142 megawatts (MW) located in Arizona, California, Texas, Minnesota, and Utah; 2 wind power generating facilities with an aggregate generating capacity of 203 MW situated in Idaho and New Mexico; and gas-fired facility with a generating capacity of 512 MW located in Bayonne, New Jersey. The MIC Hawaii segment processes, distributes, and sells synthetic and renewable natural gas; and distributes and sells liquefied natural gas and petroleum gas to residential, commercial, hospitality, military, and wholesale customers, as well as to the public sector in Oahu, Hawaii, Maui, Kauai, Molokai, and Lanai. This segment's products are used in various commercial and residential applications, such as water heating, drying, cooking, power generation, and other uses, as well as for use in specialty vehicles. The company was founded in 2004 and is based in New York, New York.

About 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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