Critical Contrast: KDDI (OTCMKTS:KDDIY) & Edenred (OTCMKTS:EDNMY)

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

Dividends

Edenred pays an annual dividend of $0.39 per share and has a dividend yield of 2.4%. KDDI pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. KDDI pays out 31.7% of its earnings in the form of a dividend.

Volatility & Risk

Edenred has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, KDDI has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Edenred	N/A	N/A	N/A
KDDI	10.71%	10.87%	4.03%

Valuation and Earnings

This table compares Edenred and KDDI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Edenred	$3.09 billion	2.51	$288.95 million	N/A	N/A
KDDI	$39.86 billion	1.78	$4.40 billion	$1.01	15.99

KDDI has higher revenue and earnings than Edenred.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Edenred and KDDI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Edenred	0	2	0	0	2.00
KDDI	0	0	0	1	4.00

Insider and Institutional Ownership

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

Summary

KDDI beats Edenred on 8 of the 12 factors compared between the two stocks.

About Edenred

Edenred SE provides digital platform for services and payments for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, a solution that allows employees to take time out for lunch at a partner merchant; Ticket Alimentación that allows users to pay for groceries in neighborhood stores and supermarkets; Ticket Regalo, a gift voucher; Ticket CESU, a human services solution; Ticket Plus Card, a solution that enables the purchase of staples, such as food and fuel; Ticket Welfare, which employees can use to pay for a range of services, such as access to sports facilities and solutions for their children’s educational needs; Ticket Guardería for companies without on-site daycare facilities; Childcare Vouchers; Ticket EcoCheque, a solutions that encourages purchase of environmentally friendly products; Ticket Kadeos Culture and Ticket Cultura that are solutions for cultural goods and services. The company also offers mobility solutions comprising Ticket Log for light vehicle fleet management; Ticket Fleet Pro and Ticket Cargo for truck fleet management; Ticket Car for employees to pay for fuel and other business travel expenses; UTA Edenred for paying tolls, optimize routes, pay for roadside assistance and truck servicing, and for VAT reimbursement; fuel cards; and refund services for VAT and excise duties. In addition, it provides complementary solutions comprising corporate payment, invoice processing automation, and salary card solutions. Edenred SE was founded in 1962 and is headquartered in Issy-les-Moulineaux, France.

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.