Financial Comparison: Rogers Communication (NYSE:RCI) & NTT (OTCMKTS:NTTYY)

NTT (OTCMKTS:NTTYY) and Rogers Communication (NYSE:RCI) are both large-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

NTT pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Rogers Communication pays an annual dividend of $1.44 per share and has a dividend yield of 4.3%. NTT pays out 34.8% of its earnings in the form of a dividend. Rogers Communication pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and price targets for NTT and Rogers Communication, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NTT	0	1	0	1	3.00
Rogers Communication	1	2	6	0	2.56

Rogers Communication has a consensus price target of $35.00, suggesting a potential upside of 4.80%. Given Rogers Communication’s higher possible upside, analysts clearly believe Rogers Communication is more favorable than NTT.

Volatility & Risk

NTT has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Rogers Communication has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Profitability

This table compares NTT and Rogers Communication’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NTT	6.29%	9.10%	1.97%
Rogers Communication	4.11%	11.51%	2.99%

Earnings and Valuation

This table compares NTT and Rogers Communication”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NTT	$95.72 billion	0.91	$6.84 billion	$1.84	14.45
Rogers Communication	$15.54 billion	1.16	$4.93 billion	$1.20	27.83

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

Institutional & Insider Ownership

0.1% of NTT shares are owned by institutional investors. Comparatively, 45.5% of Rogers Communication shares are owned by institutional investors. 29.0% of Rogers Communication shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Rogers Communication beats NTT on 10 of the 17 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 Rogers Communication

Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device financing, device protection, global voice and data roaming, wireless home phone, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device shipping and express pickup services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands. It also provides internet and WiFi services; and monitoring, security, automation, energy efficiency, and smart control through smartphone app. In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, and integrated apps; personal video recorders; linear and time-shifted programming; digital specialty channels; and 4K television programming. Further, it provides residential and small business local telephony services; voicemail, call waiting, and long distance; voice, data networking, Internet protocol (IP), and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; information technology and network technologies; cable access network services; telecommunications technical consulting services; and season games through television, smartphones, tablets, personal computers, and other streaming devices, as well as operates Ignite TV and Ignite TV app. Additionally, the company owns Toronto Blue Jays and the Rogers Centre event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN television networks, as well as 52 AM and FM radio stations. It also offers Rogers and the Rogers World Elite Mastercard. The company was founded in 1960 and is headquartered in Toronto, Canada.