Reviewing NTT (NTTYY) & Its Competitors

NTT (OTCMKTS:NTTYY) is one of 203 public companies in the “Diversified Telecommunication Services” industry, but how does it weigh in compared to its competitors? We will compare NTT to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Volatility and Risk

NTT has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, NTT’s competitors have a beta of -4.90, suggesting that their average share price is 590% less volatile than the S&P 500.

Earnings and Valuation

This table compares NTT and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NTT	$95.72 billion	$6.84 billion	13.75
NTT Competitors	$106.23 billion	$893.66 million	-168.83

NTT’s competitors have higher revenue, but lower earnings than NTT. NTT is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

0.1% of NTT shares are held by institutional investors. Comparatively, 32.8% of shares of all “Diversified Telecommunication Services” companies are held by institutional investors. 18.3% of shares of all “Diversified Telecommunication Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for NTT and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NTT	0	1	0	1	3.00
NTT Competitors	1762	5367	7771	385	2.44

As a group, “Diversified Telecommunication Services” companies have a potential upside of 21.28%. Given NTT’s competitors higher possible upside, analysts clearly believe NTT has less favorable growth aspects than its competitors.

Dividends

NTT pays an annual dividend of $0.64 per share and has a dividend yield of 2.5%. NTT pays out 34.8% of its earnings in the form of a dividend. As a group, “Diversified Telecommunication Services” companies pay a dividend yield of 13.6% and pay out 33.2% of their earnings in the form of a dividend. NTT lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares NTT and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NTT	6.29%	9.10%	1.97%
NTT Competitors	-10.13%	-215.82%	-3.42%

Summary

NTT beats its competitors on 8 of the 15 factors compared.

NTT Company Profile

NTT, formally Nippon Telegraph and Telephone Corporation, is a Japanese telecommunications and information technology company. Its businesses include fixed-line and mobile communications, internet and network services, systems integration, cloud computing, data centers, and other information and communications technology solutions. The company traces its origins to Japan’s Nippon Telegraph and Telephone Public Corporation, established in 1952. It was reorganized as a private corporation in 1985 and has since developed a broad portfolio of communications and technology businesses.