Nippon Telegraph & Telephone (OTCMKTS:NTTYY) and Internet Gold Golden Lines (NASDAQ:IGLD) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Institutional & Insider Ownership

0.3% of Nippon Telegraph & Telephone shares are held by institutional investors. Comparatively, 3.4% of Internet Gold Golden Lines shares are held by institutional investors. 1.0% of Internet Gold Golden Lines shares are held by company 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.

Earnings & Valuation

This table compares Nippon Telegraph & Telephone and Internet Gold Golden Lines’ 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 0.78 $8.19 billion $4.12 10.25
Internet Gold Golden Lines $2.82 billion 0.01 -$4.00 million N/A N/A

Nippon Telegraph & Telephone has higher revenue and earnings than Internet Gold Golden Lines.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nippon Telegraph & Telephone and Internet Gold Golden Lines, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nippon Telegraph & Telephone 0 2 1 0 2.33
Internet Gold Golden Lines 0 0 0 0 N/A

Profitability

This table compares Nippon Telegraph & Telephone and Internet Gold Golden Lines’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nippon Telegraph & Telephone 7.90% 8.74% 4.82%
Internet Gold Golden Lines -2.53% -10.13% -1.10%

Dividends

Nippon Telegraph & Telephone pays an annual dividend of $1.23 per share and has a dividend yield of 2.9%. Internet Gold Golden Lines does not pay a dividend. Nippon Telegraph & Telephone pays out 29.9% of its earnings in the form of a dividend.

Risk & Volatility

Nippon Telegraph & Telephone has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Internet Gold Golden Lines has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500.

Summary

Nippon Telegraph & Telephone beats Internet Gold Golden Lines on 8 of the 12 factors compared between the two stocks.

About Nippon Telegraph & Telephone

Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, system integration, and other 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 inter-prefectural communications services, services related to the international communications and solutions business, and related services; mobile phone and related services; and network system and system integration services. It also provides IT system building and maintenance support for corporations; professional security, ICT, data center-related, teleconference, Web conference, video conference, Internet connection, video distribution, and smart life area services; and consulting, and system design and development services. In addition, the company engages in the acquisition, development, leasing, and management of real estate properties; lease and installment sales of telecommunications-related devices; billing and collection of charges for communications and other services; and design, management, and maintenance of buildings, equipment, and electric power facilities. Further, it is involved in the development, production, operation, and maintenance of information communications systems and software; and technology transfer and consulting activities, as well as provision of credit card transaction settlement services. Additionally, the company operates office, retail, and residential properties under the Wellith brand; hotels and resorts; and shared-office properties that include daycare facilities and office spaces. As of March 31, 2018, it had 19,869 thousand fixed line subscriptions. The company was founded in 1952 and is headquartered in Tokyo, Japan.

About Internet Gold Golden Lines

Internet Gold – Golden Lines Ltd. provides various telecommunications services in Israel. The company offers domestic fixed-line, cellular, and international communication services; Internet services; and multi-channel television, television and radio broadcasting, satellite broadcasting, and customer call center services. It also engages in the development and maintenance of communication infrastructure, as well as provision of communication services to other communications providers; online shopping and classified ads; and engages in the supply and maintenance of equipment on customer premises. The company was founded in 1980 and is headquartered in Ramat Gan, Israel. Internet Gold – Golden Lines Ltd. is a subsidiary of Eurocom Communications Ltd.

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