Financial Comparison: PC Tel (NASDAQ:PCTI) vs. NTT Docomo (NASDAQ:DCMYY)

PC Tel (NASDAQ:PCTI) and NTT Docomo (OTCMKTS:DCMYY) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Insider and Institutional Ownership

59.1% of PC Tel shares are owned by institutional investors. Comparatively, 0.1% of NTT Docomo shares are owned by institutional investors. 4.7% of PC Tel shares are owned by insiders. 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.

Volatility & Risk

PC Tel has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, NTT Docomo has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PC Tel and NTT Docomo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PC Tel 0 0 2 0 3.00
NTT Docomo 1 0 0 0 1.00

PC Tel presently has a consensus price target of $8.25, suggesting a potential upside of 44.74%. Given PC Tel’s stronger consensus rating and higher probable upside, analysts clearly believe PC Tel is more favorable than NTT Docomo.

Earnings and Valuation

This table compares PC Tel and NTT Docomo’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PC Tel $90.62 million 1.18 $3.75 million $0.29 19.66
NTT Docomo $43.67 billion 2.15 $5.97 billion $1.69 16.76

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

Profitability

This table compares PC Tel and NTT Docomo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PC Tel 4.14% 6.49% 5.34%
NTT Docomo 13.15% 11.69% 8.46%

Dividends

PC Tel pays an annual dividend of $0.22 per share and has a dividend yield of 3.9%. NTT Docomo pays an annual dividend of $0.98 per share and has a dividend yield of 3.5%. PC Tel pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NTT Docomo pays out 58.0% of its earnings in the form of a dividend. PC Tel has raised its dividend for 2 consecutive years. PC Tel is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NTT Docomo beats PC Tel on 9 of the 17 factors compared between the two stocks.

About PC Tel

PCTEL, Inc., together with its subsidiaries, delivers performance critical telecom solutions in the Asia Pacific, Europe, the Middle East, Africa, and the Americas. The company designs and manufactures precision antennas, which are used primarily in small cells, enterprise Wi-Fi access points, fleet management and transit systems, and in equipment and devices for the Industrial Internet of Things. It also offers radio frequency test and measurement tools that enhance the performance of wireless networks. The company serves public and private carriers, wireless infrastructure providers, wireless equipment distributors, and value added resellers, as well as original equipment manufacturers. PCTEL, Inc. was founded in 1994 and is headquartered in Bloomingdale, Illinois.

About NTT Docomo

NTT DOCOMO, INC., a telecommunications company, provides various mobile services in Japan and internationally. The company offers iPhone, iPad, smartphone, tablet, and feature phone products and services under the docomo name, as well as d POINT CLUB, a point program. It also provides technical and operational services to mobile operators and other companies. In addition, the company offers LTE, FOMA, and FOMA high-speed services; docomo Wi-Fi services; VoLTE voice call services; docomo Hikari, an optical Internet service; and docomo Shop services. It serves approximately 73 million customers through advanced wireless networks, including a LTE network and LTE-advanced network. The company was founded in 1991 and is headquartered in Tokyo, Japan. NTT DOCOMO, INC. is a subsidiary of Nippon Telegraph and Telephone Corporation.

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