Nippon Telegraph & Telephone (NTTYY) vs. KT (KT) Financial Analysis
Nippon Telegraph & Telephone (NYSE: KT) and KT (NYSE:KT) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
This is a breakdown of recent ratings and target prices for Nippon Telegraph & Telephone and KT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nippon Telegraph & Telephone||0||1||1||0||2.50|
This table compares Nippon Telegraph & Telephone and KT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nippon Telegraph & Telephone||7.70%||8.49%||4.71%|
Insider & Institutional Ownership
0.2% of Nippon Telegraph & Telephone shares are held by institutional investors. Comparatively, 29.5% of KT shares are held by institutional investors. 1.0% of KT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Nippon Telegraph & Telephone and KT’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nippon Telegraph & Telephone||$106.55 billion||0.82||$8.21 billion||$4.12||10.67|
|KT||$21.05 billion||0.32||$415.40 million||$0.88||15.74|
Nippon Telegraph & Telephone has higher revenue and earnings than KT. Nippon Telegraph & Telephone is trading at a lower price-to-earnings ratio than KT, indicating that it is currently the more affordable of the two stocks.
Nippon Telegraph & Telephone pays an annual dividend of $1.10 per share and has a dividend yield of 2.5%. KT pays an annual dividend of $0.39 per share and has a dividend yield of 2.8%. Nippon Telegraph & Telephone pays out 26.7% of its earnings in the form of a dividend. KT pays out 44.3% 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.
Nippon Telegraph & Telephone beats KT on 10 of the 14 factors compared between the two stocks.
Nippon Telegraph & Telephone Company Profile
Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunication equipment, system integration, and other telecommunications-related services in Japan and internationally. It operates through five segments: Regional Communications Business, Long Distance and International Communications Business, Mobile Communications Business, Data Communications Business, and Other Business. The company offers regional communications services, such as intra-prefectural communications services and related ancillary services; long distance and international communications services comprising inter-prefectural communications services, international communications business, solutions business, and related services; mobile communications services, which include mobile phone and related services; and data communications services consisting of system integration and network system services. It also provides financial services, such as issuing leases and credit cards; real estate services, including building rentals and apartment sales; systems development services; and construction-related services, such as the design, construction, and maintenance of buildings. In addition, the company engages in strategic planning, designing, installing, and operating data communications systems and computer network-based information systems, as well as providing IT services. As of March 31, 2017, it had 20,053 thousand broadband service subscriptions; 919 thousand ADSL service subscriptions; 21,336 thousand fixed-line telephone service subscriptions and ISDN service subscriptions; 11,231 thousand ISP service subscriptions; and 74,880 thousand mobile broadband and voice communications service subscribers. The company was founded in 1952 and is headquartered in Tokyo, Japan.
KT Company Profile
KT Corporation provides telecommunications services in Korea and internationally. The company offers local, domestic long-distance, and international long-distance fixed-line and voice over Internet protocol fixed-line telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services, including IPTV services; and data communication services, such as leased line and broadband Internet connection services to institutional customers. It also provides mobile voice and data telecommunications, credit card processing and other financial, and satellite TV and media content services. In addition, the company offers information technology and network services. Further, it plans and develops commercial and office buildings and condominiums, as well as leases buildings; maintains public telephones; manages sports groups; develops medicine and pharmacy; and sells communication devices. Additionally, the company offers security, B2C and B2B, investment fund, software development and data processing, Internet banking ASP and security, value added network, system integration and maintenance, mobile marketing, and PCS distribution services. It also provides TV content, residential building development and supply, asset management and consulting, cloud system, data center development, satellite communication, music contents investment, technology business finance, advertising agency, network installation and management, system integration and maintenance, foreign investment, electronic communication, and wireless high speed Internet services, as well as call center services for the financial sectors. As of December 31, 2017, the company served approximately 20,015,000 mobile subscribers and 7.5 million IPTV subscribers. The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam, South Korea.
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