Contrasting PLDT (OTCMKTS:PHTCF) & Nippon Telegraph and Telephone (OTCMKTS:NTTYY)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nippon Telegraph and Telephone and PLDT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Telegraph and Telephone	0	0	0	0	N/A
PLDT	0	0	0	0	N/A

Profitability

This table compares Nippon Telegraph and Telephone and PLDT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Telegraph and Telephone	9.61%	12.44%	4.65%
PLDT	N/A	N/A	N/A

Insider & Institutional Ownership

0.1% of Nippon Telegraph and Telephone shares are owned by institutional investors. Comparatively, 32.2% of PLDT shares are owned by institutional investors. 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 and Telephone and PLDT’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Telegraph and Telephone	$92.65 billion	1.00	$8.83 billion	$2.62	10.36
PLDT	N/A	N/A	N/A	$159.32	0.14

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

Dividends

Nippon Telegraph and Telephone pays an annual dividend of $0.61 per share and has a dividend yield of 2.2%. PLDT pays an annual dividend of $128.17 per share and has a dividend yield of 582.6%. Nippon Telegraph and Telephone pays out 23.3% of its earnings in the form of a dividend. PLDT pays out 80.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Nippon Telegraph and Telephone beats PLDT on 6 of the 9 factors compared between the two stocks.

About Nippon Telegraph and Telephone

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 PLDT

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.