Critical Comparison: NTT (OTCMKTS:NTTYY) and Hellenic Telecom Organization (OTCMKTS:HLTOY)

NTT (OTCMKTS:NTTYY) and Hellenic Telecom Organization (OTCMKTS:HLTOY) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Earnings & Valuation

This table compares NTT and Hellenic Telecom Organization”s gross revenue, earnings per share 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	12.01
Hellenic Telecom Organization	$2.10 billion	3.96	$518.11 million	$0.63	16.13

NTT has higher revenue and earnings than Hellenic Telecom Organization. NTT is trading at a lower price-to-earnings ratio than Hellenic Telecom Organization, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.1% of NTT shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

NTT pays an annual dividend of $0.63 per share and has a dividend yield of 2.5%. Hellenic Telecom Organization pays an annual dividend of $0.36 per share and has a dividend yield of 3.5%. NTT pays out 29.9% of its earnings in the form of a dividend. Hellenic Telecom Organization pays out 57.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current ratings and target prices for NTT and Hellenic Telecom Organization, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NTT	0	1	0	0	2.00
Hellenic Telecom Organization	0	0	0	0	0.00

Volatility & Risk

NTT has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Hellenic Telecom Organization has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NTT	7.52%	9.87%	3.33%
Hellenic Telecom Organization	15.62%	26.32%	10.20%

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 Hellenic Telecom Organization

Hellenic Telecommunications Organization S.A. provides telecommunications and related services to businesses and individuals primarily in Greece and Romania. It operates through OTE, COSMOTE Group, and Telekom Romania Mobile segments. The company offers fixed-line, Internet access, ICT, and TV production services; and international carrier services. It also provides mobile and satellite telecommunication, electronic money, e-commerce, financing, consultancy and security, real estate, insurance brokerage, training, wholesale telephony, retail, marketing, overdue accounts management, wholesale broadband, and infrastructure services. Hellenic Telecommunications Organization S.A. was incorporated in 1949 and is based in Athens, Greece. Hellenic Telecommunications Organization S.A. operates as a subsidiary of Deutsche Telekom AG.