Telecom Italia (OTCMKTS:TIIAY) & NTT (OTCMKTS:NTTYY) Financial Analysis
by Mitch Edgeman · The Markets DailyNTT (OTCMKTS:NTTYY – Get Free Report) and Telecom Italia (OTCMKTS:TIIAY – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.
Profitability
This table compares NTT and Telecom Italia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NTT | 7.52% | 9.59% | 3.42% |
| Telecom Italia | N/A | N/A | N/A |
Insider & Institutional Ownership
0.1% of NTT shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
NTT pays an annual dividend of $0.63 per share and has a dividend yield of 2.5%. Telecom Italia pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. NTT pays out 29.9% of its earnings in the form of a dividend.
Analyst Ratings
This is a breakdown of current ratings and price targets for NTT and Telecom Italia, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NTT | 0 | 1 | 0 | 0 | 2.00 |
| Telecom Italia | 0 | 2 | 1 | 3 | 3.17 |
Earnings and Valuation
This table compares NTT and Telecom Italia”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NTT | $90.00 billion | N/A | $6.60 billion | $2.11 | 11.76 |
| Telecom Italia | $15.88 billion | 0.79 | -$660.08 million | N/A | N/A |
NTT has higher revenue and earnings than Telecom Italia.
Volatility & Risk
NTT has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
Summary
NTT beats Telecom Italia on 7 of the 12 factors compared between the two stocks.
About NTT
Nippon Telegraph and Telephone Corporation operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. The Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers consulting, system and software development, network system, cloud, global data center, and related services. The Others segment engages in the real estate, energy, and other businesses. The company was founded in 1952 and is headquartered in Tokyo, Japan.
About Telecom Italia
Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.