Head-To-Head Review: Deutsche Telekom (OTCMKTS:DTEGY) and IDT (NYSE:IDT)

IDT (NYSE:IDT) and Deutsche Telekom (OTCMKTS:DTEGY) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares IDT and Deutsche Telekom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IDT	6.18%	27.03%	13.45%
Deutsche Telekom	10.67%	10.14%	3.25%

Risk and Volatility

IDT has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Earnings and Valuation

This table compares IDT and Deutsche Telekom”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDT	$1.23 billion	0.96	$76.09 million	$3.01	15.50
Deutsche Telekom	$125.29 billion	1.33	$12.13 billion	$2.78	12.24

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

Analyst Recommendations

This is a summary of recent recommendations for IDT and Deutsche Telekom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDT	0	0	1	0	3.00
Deutsche Telekom	0	2	1	3	3.17

Institutional and Insider Ownership

59.3% of IDT shares are owned by institutional investors. 25.3% of IDT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

IDT beats Deutsche Telekom on 7 of the 13 factors compared between the two stocks.

About IDT

IDT Corporation provides communications and payment services in the United States, the United Kingdom, and internationally. It operates through Fintech, National Retail Solutions, net2phone, and Traditional Communications segments. The company operates point of sale, a terminal-based platform which provides independent retailers store management software, electronic payment processing, and other ancillary merchant services; and provides marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services; and Leaf, a digital wallet services which operates money transfer businesses, as well as net2phone, a unified cloud communication services, which includes voice, texting, and chat services to enable smarter business conversations. In addition, the company provides IDT Digital Payments enables businesses, entrepreneurs, and developers to offer prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards, and prepaid utility payments through its Zendit platform; and BOSS Revolution Calling, which provides international long-distance voice services primarily to immigrant communities in the United States and Canada. Further, it offers IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a unique self-serve portal that offers SMBs the power to purchase DIDs, manage IPs, select termination quality, make payments, and other services. The company also provides Awards2Go, a B2B incentive, loyalty, and customer appreciation gift card solution; and IO Security which provides automation to remediation. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.

About Deutsche Telekom

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through Germany, United States, Europe, Systems Solutions, Group Development, and Group Headquarters and Group Services segments. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. In addition, the company provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. Further, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and network services. Additionally, the company provides wireless communications services; and cloud services, digital solutions, security, and advisory solutions. Deutsche Telekom AG has mobile customers and broadband customers, as well as fixed-network lines. The company was incorporated in 1995 and is headquartered in Bonn, Germany.