NTT DOCOMO (NYSE: DCM) and Vodafone Group PLC (NASDAQ:VOD) are both large-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NTT DOCOMO and Vodafone Group PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NTT DOCOMO 0 3 1 0 2.25
Vodafone Group PLC 1 4 6 1 2.58

Vodafone Group PLC has a consensus target price of $31.52, indicating a potential upside of 10.75%. Given Vodafone Group PLC’s stronger consensus rating and higher probable upside, analysts clearly believe Vodafone Group PLC is more favorable than NTT DOCOMO.

Profitability

This table compares NTT DOCOMO and Vodafone Group PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NTT DOCOMO 13.90% 11.44% 8.65%
Vodafone Group PLC N/A N/A N/A

Institutional & Insider Ownership

0.5% of NTT DOCOMO shares are owned by institutional investors. Comparatively, 10.2% of Vodafone Group PLC shares are owned by institutional investors. 1.0% of Vodafone Group PLC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company 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 1.6%. Vodafone Group PLC pays an annual dividend of $1.64 per share and has a dividend yield of 5.8%. NTT DOCOMO pays out 22.8% of its earnings in the form of a dividend.

Risk and Volatility

NTT DOCOMO has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Vodafone Group PLC has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares NTT DOCOMO and Vodafone Group PLC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NTT DOCOMO $42.61 billion 1.98 $12.91 billion $1.58 14.42
Vodafone Group PLC N/A N/A N/A N/A N/A

NTT DOCOMO has higher revenue and earnings than Vodafone Group PLC.

Summary

Vodafone Group PLC beats NTT DOCOMO on 9 of the 13 factors compared between the two stocks.

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 Vodafone Group PLC

Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.

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