Anterix (NASDAQ:ATEX) vs. KDDI (OTCMKTS:KDDIY) Critical Analysis

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

Risk & Volatility

Anterix has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, KDDI has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anterix	$6.50 million	234.93	$90.64 million	$3.50	22.25
KDDI	$40.34 billion	1.84	$4.67 billion	$1.26	14.71

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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Anterix and KDDI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anterix	0	3	1	1	2.60
KDDI	0	0	0	2	4.00

Anterix presently has a consensus price target of $120.00, indicating a potential upside of 54.10%. Given Anterix’s higher possible upside, research analysts clearly believe Anterix is more favorable than KDDI.

Institutional & Insider 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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

Summary

Anterix beats KDDI on 8 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.