Analyzing Data Storage (NASDAQ:DTST) and NTT (OTCMKTS:NTTYY)

NTT (OTCMKTS:NTTYY) and Data Storage (NASDAQ:DTST) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Earnings and Valuation

This table compares NTT and Data Storage”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NTT	$95.72 billion	0.96	$6.84 billion	$2.09	13.40
Data Storage	$1.38 million	5.31	$19.20 million	($0.76)	-4.12

NTT has higher revenue and earnings than Data Storage. Data Storage is trading at a lower price-to-earnings ratio than NTT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for NTT and Data Storage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NTT	0	2	0	0	2.00
Data Storage	1	0	0	0	1.00

Insider and Institutional Ownership

0.1% of NTT shares are owned by institutional investors. Comparatively, 11.6% of Data Storage shares are owned by institutional investors. 21.2% of Data Storage shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

NTT has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500. Comparatively, Data Storage has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares NTT and Data Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NTT	7.17%	10.45%	2.41%
Data Storage	1,247.09%	-5.48%	-4.86%

Summary

NTT beats Data Storage 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 Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.