Head to Head Review: freenet (OTCMKTS:FRTAF) versus Deutsche Post (OTCMKTS:DHLGY)

freenet (OTCMKTS:FRTAF) and Deutsche Post (OTCMKTS:DHLGY) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for freenet and Deutsche Post, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
freenet	0	0	0	0	N/A
Deutsche Post	1	0	0	0	1.00

Earnings and Valuation

This table compares freenet and Deutsche Post”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
freenet	$2.84 billion	1.21	$167.32 million	$1.85	14.52
Deutsche Post	$88.48 billion	0.57	$3.98 billion	$3.15	12.99

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

Volatility and Risk

freenet has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Deutsche Post has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares freenet and Deutsche Post’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
freenet	8.56%	18.16%	7.60%
Deutsche Post	4.01%	14.03%	4.85%

Summary

freenet beats Deutsche Post on 5 of the 9 factors compared between the two stocks.

About freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.

About Deutsche Post

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.