Critical Analysis: Anterix (NASDAQ:ATEX) & KDDI (OTCMKTS:KDDIY)

Anterix (NASDAQ:ATEX) and KDDI (OTCMKTS:KDDIY) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Anterix and KDDI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anterix	0	3	1	1	2.60
KDDI	0	1	0	1	3.00

Anterix presently has a consensus target price of $120.00, suggesting a potential upside of 55.86%. Given Anterix’s higher probable upside, research analysts plainly believe Anterix is more favorable than KDDI.

Profitability

This table compares Anterix and KDDI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anterix	933.03%	-10.65%	-6.06%
KDDI	N/A	N/A	N/A

Valuation & Earnings

This table compares Anterix and KDDI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anterix	$6.50 million	232.27	$90.64 million	$3.50	22.00
KDDI	$40.34 billion	1.93	$4.67 billion	$1.26	15.45

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

Insider & Institutional Ownership

87.7% of Anterix shares are owned by institutional investors. Comparatively, 0.1% of KDDI shares are owned by institutional investors. 40.0% of Anterix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Anterix has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, KDDI has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Summary

Anterix beats KDDI on 9 of the 14 factors compared between the two stocks.

About Anterix

Anterix Inc. operates as a wireless communications company. The company focuses on commercializing its spectrum assets to enable the targeted utility and critical infrastructure customers to deploy private broadband networks and innovative broadband solutions. It holds licensed spectrum in the 900 MHz band with coverage throughout the United States, Alaska, Hawaii, and Puerto Rico. The company was formerly known as pdvWireless, Inc. and changed its name to Anterix Inc. in August 2019. Anterix Inc. was incorporated in 1997 and is headquartered in Woodland Park, New Jersey.

About KDDI

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.