Cellcom Israel (NYSE: CEL) and NTT DOCOMO (NYSE:DCM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Insider and Institutional Ownership

5.5% of Cellcom Israel shares are held by institutional investors. Comparatively, 0.5% of NTT DOCOMO shares are held by institutional investors. 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.

Dividends

NTT DOCOMO pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Cellcom Israel does not pay a dividend. NTT DOCOMO pays out 23.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Cellcom Israel and NTT DOCOMO’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cellcom Israel $1.11 billion 0.88 $209.79 million $0.32 30.18
NTT DOCOMO $42.61 billion 2.11 $12.91 billion $1.51 16.10

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

Volatility and Risk

Cellcom Israel has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, NTT DOCOMO has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Cellcom Israel and NTT DOCOMO, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 1 1 0 0 1.50
NTT DOCOMO 0 3 0 0 2.00

Profitability

This table compares Cellcom Israel and NTT DOCOMO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cellcom Israel 3.12% 8.94% 1.90%
NTT DOCOMO 13.57% 10.97% 8.30%

Summary

NTT DOCOMO beats Cellcom Israel on 9 of the 13 factors compared between the two stocks.

Cellcom Israel Company Profile

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

NTT DOCOMO Company Profile

NTT DOCOMO, INC. (DOCOMO) is a mobile telecommunications carrier. The Company operates through three segments: telecommunications business, smart life business and other businesses. The telecommunications business segment includes mobile phone services (long-term evolution (LTE) (Xi) services and freedom of mobile multimedia access (FOMA) services), optical-fiber broadband service, satellite mobile communications services, international services and equipment sales related to these services. The smart life business segment includes video and music distribution, electronic books and other services offered through its dmarket portal, as well as finance/payment services, shopping services and various other services to support the Company’s customers’ daily lives. Its other businesses segment primarily includes Mobile Device Protection Service, as well as the development, sale and maintenance of information technology (IT) systems.

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