Analyzing Deutsche Telekom (OTCMKTS:DTEGY) & Nippon Telegraph and Telephone (OTCMKTS:NTTYY)

Nippon Telegraph and Telephone (OTCMKTS:NTTYY) 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 earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Risk and Volatility

Nippon Telegraph and Telephone has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Deutsche Telekom has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nippon Telegraph and Telephone	7.30%	8.93%	3.34%
Deutsche Telekom	10.26%	10.03%	3.20%

Valuation & Earnings

This table compares Nippon Telegraph and Telephone and Deutsche Telekom”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Telegraph and Telephone	$90.00 billion	N/A	$6.60 billion	$1.96	13.19
Deutsche Telekom	$125.29 billion	1.43	$12.13 billion	$2.62	13.72

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Nippon Telegraph and Telephone and Deutsche Telekom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Telegraph and Telephone	0	1	0	0	2.00
Deutsche Telekom	0	1	1	4	3.50

Institutional & Insider Ownership

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

Summary

Deutsche Telekom beats Nippon Telegraph and Telephone on 10 of the 12 factors compared between the two stocks.

About Nippon Telegraph and Telephone

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 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.