Analysis of Japanese Telegraph and Telephone (OTCMKTS: NTTYY) and Telstra (OTCMKTS: TLSYY)
Nippon Telegraph and Telephone (OTCMKTS:NTTYY – Get Rating) and Telstra (OTCMKTS:TLSYY – Get Rating) are both large-cap utility companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
Valuation and benefits
This table compares the revenue, earnings per share (EPS) and valuation of Nippon Telegraph and Telephone and Telstra.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Japanese telegraph and telephone||$108.29 billion||0.92||$10.51 billion||$2.88||9.63|
|stra||$15.21 billion||2.16||$1.39 billion||N / A||N / A|
Nippon Telegraph and Telephone has higher revenues and profits than Telstra.
Risk and Volatility
Nippon Telegraph and Telephone has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. In comparison, Telstra has a beta of 0.81, indicating its stock price is 19 % less volatile than the S&P 500.
This table compares the net margins, return on equity and return on assets of Nippon Telegraph and Telephone and Telstra.
|Net margins||Return on equity||return on assets|
|Japanese telegraph and telephone||9.78%||13.15%||4.92%|
|stra||N / A||N / A||N / A|
Nippon Telegraph and Telephone pays an annual dividend of $0.71 per share and has a dividend yield of 2.6%. Telstra pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. Nippon Telegraph and Telephone distributes 24.7% of its profits as a dividend.
Institutional and insider ownership
0.1% of Nippon Telegraph and Telephone shares are held by institutional investors. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent valuations and price targets for Nippon Telegraph and Telephone and Telstra, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Japanese telegraph and telephone||0||1||1||0||2.50|
Nippon Telegraph and Telephone beats Telstra on 8 out of 12 factors compared between the two stocks.
About the telegraph and the Japanese telephone
(Get a rating)
Nippon Telegraph and Telephone Corporation provides fixed voice, mobile voice, IP/packet communications and system integration services in Japan and worldwide. The Company’s Mobile Communications Business segment offers mobile phone and related services, including distribution of movies and music, e-books, finance and payment services, as well as smart life zone services and internet connection. Its regional communications business segment provides intra-prefectural communications services, as well as FTTH and other services. The Company’s Long Distance and International Communications business segment offers inter-prefectural communications services, international communications services and services related to solution business and related services. This segment mainly provides cloud, data center, migration and maintenance support, IT system construction, professional security, ICT, network, management, mobile connectivity and other services , as well as teleconferencing, web conferencing and videoconferencing services. Its Data Communications Business segment offers network systems and system integration services comprising ERP services, ICT outsourcing, consulting, system design and development and other services. The Company’s Other Business segment is engaged in the acquisition, development, construction, rental and management of real estate; design, management and maintenance of electrical buildings, equipment and installations; development of smart energy solutions and energy management systems; credit card transaction settlement activities; development, production, operation and maintenance of information communication systems and software; billing and collection of communication costs and other activities; system design and development; finance; and technology transfer and technical consulting companies. It also sells telecommunications equipment. The company was founded in 1952 and is based in Tokyo, Japan.
(Get a rating)
Telstra Corporation Limited provides telecommunications and information services to businesses, governments and individuals in Australia and overseas. It operates in four segments: Telstra Consumer and Small Business, Telstra Enterprise, Networks and IT, and Telstra InfraCo. The company offers telecommunications products, services and solutions in mobiles, fixed and mobile broadband, media and digital content in prepaid and postpaid services, as well as call centres, Telstra shops and the network of Telstra dealers. It also provides network capacity and management, unified communications, cloud, industry solutions, integrated and monitoring services to governments and large enterprises; builds and manages digital platforms; and provides telecommunications products and services to other carriers, carrier service providers and Internet service providers. In addition, the Company operates fixed passive network infrastructure, including data centers, exchanges, poles, ducts, pits and pipes, fiber network and mobile towers; provides wholesale customers with access to network infrastructure; provides long-term access to components of infrastructure and network services under the infrastructure services agreement and commercial contracts; and designs and builds fiber, exchanges and other infrastructure. The company was formerly known as Australian and Overseas Telecommunications Corporation Limited and changed its name to Telstra Corporation Limited in April 1993. Telstra Corporation Limited was founded in 1901 and is based in Melbourne, Australia.
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