Analyzing PLDT (NYSE:PHI) and NTT (OTCMKTS:NTTYY)

NTT (OTCMKTS:NTTYY) and PLDT (NYSE:PHI) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Volatility & Risk

NTT has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500. Comparatively, PLDT has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Institutional & Insider Ownership

0.1% of NTT shares are owned by institutional investors. Comparatively, 2.3% of PLDT shares are owned by institutional investors. 0.7% of PLDT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

NTT pays an annual dividend of $0.64 per share and has a dividend yield of 2.5%. PLDT pays an annual dividend of $1.08 per share and has a dividend yield of 6.1%. NTT pays out 34.8% of its earnings in the form of a dividend. PLDT pays out 48.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares NTT and PLDT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NTT	$95.72 billion	0.86	$6.84 billion	$1.84	13.75
PLDT	$220.89 billion	0.02	$498.72 million	$2.22	7.96

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

Profitability

This table compares NTT and PLDT’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%
PLDT	12.81%	26.76%	5.36%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NTT and PLDT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NTT	0	1	0	1	3.00
PLDT	0	4	0	0	2.00

Summary

PLDT beats NTT on 9 of the 15 factors compared between the two stocks.

About NTT

NTT, formally Nippon Telegraph and Telephone Corporation, is a Japanese telecommunications and information technology company. Its businesses include fixed-line and mobile communications, internet and network services, systems integration, cloud computing, data centers, and other information and communications technology solutions. The company traces its origins to Japan’s Nippon Telegraph and Telephone Public Corporation, established in 1952. It was reorganized as a private corporation in 1985 and has since developed a broad portfolio of communications and technology businesses.

About PLDT

PLDT Inc. is a telecommunications and digital services provider based in the Philippines. Founded in 1928, the company operates an integrated network serving residential, business and government customers across the country. Its services include mobile voice and data through its Smart brand, fixed-line telephony, home broadband and enterprise connectivity. Through its business units and subsidiaries, PLDT also provides information and communications technology services, cloud and data-center solutions, and other digital services.