Financial Contrast: NTT (OTCMKTS:NTTYY) & Telecom Italia (OTCMKTS:TIIAY)

NTT (OTCMKTS:NTTYY) and Telecom Italia (OTCMKTS:TIIAY) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Institutional & Insider Ownership

0.1% of NTT shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for NTT and Telecom Italia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NTT	0	1	0	0	2.00
Telecom Italia	0	2	0	3	3.20

Valuation and Earnings

This table compares NTT and Telecom Italia”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NTT	$90.00 billion	N/A	$6.60 billion	$2.11	11.58
Telecom Italia	$15.88 billion	0.77	-$660.08 million	N/A	N/A

NTT has higher revenue and earnings than Telecom Italia.

Dividends

NTT pays an annual dividend of $0.63 per share and has a dividend yield of 2.6%. Telecom Italia pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. NTT pays out 29.9% of its earnings in the form of a dividend.

Volatility & Risk

NTT has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares NTT and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NTT	7.52%	9.59%	3.42%
Telecom Italia	N/A	N/A	N/A

Summary

NTT beats Telecom Italia on 7 of the 11 factors compared between the two stocks.

About NTT

Nippon Telegraph and Telephone Corporation operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. The Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers consulting, system and software development, network system, cloud, global data center, and related services. The Others segment engages in the real estate, energy, and other businesses. The company was founded in 1952 and is headquartered in Tokyo, Japan.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.