NTT Docomo (NYSE: DCM) and Vuzix (NASDAQ:VUZI) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk & Volatility

NTT Docomo has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Vuzix has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NTT Docomo $42.41 billion 2.24 $6.07 billion $1.62 15.80
Vuzix $5.54 million 27.87 -$19.63 million ($1.02) -5.54

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

Analyst Recommendations

This is a summary of recent ratings for NTT Docomo and Vuzix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NTT Docomo 1 3 0 0 1.75
Vuzix 0 0 3 0 3.00

Vuzix has a consensus price target of $10.50, indicating a potential upside of 85.84%. Given Vuzix’s stronger consensus rating and higher probable upside, analysts clearly believe Vuzix is more favorable than NTT Docomo.

Dividends

NTT Docomo pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. Vuzix does not pay a dividend. NTT Docomo pays out 24.1% of its earnings in the form of a dividend.

Institutional and Insider Ownership

0.6% of NTT Docomo shares are owned by institutional investors. Comparatively, 8.4% of Vuzix shares are owned by institutional investors. 18.4% of Vuzix shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
NTT Docomo 15.25% 12.38% 9.34%
Vuzix -354.57% -89.53% -76.95%

About NTT Docomo

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.

About Vuzix

Vuzix Corporation designs, manufactures, markets, and sells wearable display devices in the United States and internationally. Its wearable display products include augmented reality (AR) smart glasses for various enterprise and commercial users and applications; and video viewing glasses for on-the-go users as mobile displays for entertainment and gaming. The company's products also include binocular wearable displays that contain two micro displays mounted in a frame attached to eyeglass-style temples or stereo headphones; monocular smart glasses products for the enterprise, industrial, and commercial markets, as well as video headphones; AR wearable products, which provide users with a live, direct, or indirect view of a physical real-world environment. Its products are worn as eyeglasses that enable the user to view video and digital content, such as movies, computer data, the Internet, or video games. In addition, it offers an app store on its Websites where users can download and purchase applications, including third party applications; VUZIX Basics, an application that provides the fundamental benefits of smart glasses to users; and VUZIX Basics Video provides remote telepresence capabilities. Further, the company provides waveguide optics and design reference kits, and custom and engineering solutions. Vuzix Corporation offers its products directly to consumers, as well as through specialty retailers, online retailers, distributors, value added resellers, and Webstores. The company was formerly known as Icuiti Corporation and changed its name to Vuzix Corporation in 2007. Vuzix Corporation was founded in 1997 and is headquartered in West Henrietta, New York.

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