Rogers Communication (NYSE:RCI) versus NTT (OTCMKTS:NTTYY) Critical Comparison

Rogers Communication (NYSE:RCI) and NTT (OTCMKTS:NTTYY) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Profitability

This table compares Rogers Communication and NTT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rogers Communication	32.29%	14.22%	3.30%
NTT	7.66%	10.32%	3.38%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rogers Communication and NTT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rogers Communication	1	4	5	0	2.40
NTT	0	2	0	0	2.00

Rogers Communication presently has a consensus target price of $36.00, suggesting a potential downside of 2.88%. Given Rogers Communication’s stronger consensus rating and higher probable upside, equities analysts clearly believe Rogers Communication is more favorable than NTT.

Valuation and Earnings

This table compares Rogers Communication and NTT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rogers Communication	$15.54 billion	1.29	$4.93 billion	$9.25	4.01
NTT	$90.00 billion	N/A	$6.60 billion	$2.18	11.22

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

Volatility & Risk

Rogers Communication has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, NTT has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.

Institutional and Insider Ownership

45.5% of Rogers Communication shares are held by institutional investors. Comparatively, 0.1% of NTT shares are held by institutional investors. 29.0% of Rogers Communication shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Rogers Communication pays an annual dividend of $1.43 per share and has a dividend yield of 3.9%. NTT pays an annual dividend of $0.63 per share and has a dividend yield of 2.6%. Rogers Communication pays out 15.5% of its earnings in the form of a dividend. NTT pays out 28.9% 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. Rogers Communication is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Rogers Communication beats NTT on 11 of the 15 factors compared between the two stocks.

About Rogers Communication

Rogers Communications Inc. operates as a communications and media company in Canada. It operates through three segments: Wireless, Cable, and Media. The company offers mobile Internet access, wireless voice and enhanced voice, device financing, device protection, global voice and data roaming, wireless home phone, bridging landline, machine-to-machine and Internet of Things solutions, and advanced wireless solutions for businesses, as well as device shipping and express pickup services; and postpaid and prepaid services under the Rogers, Fido, and chatr brands. It also provides internet and WiFi services; and monitoring, security, automation, energy efficiency, and smart control through smartphone app. In addition, the company offers local and network TV; on-demand television; cloud-based digital video recorders; voice-activated remote controls, and integrated apps; personal video recorders; linear and time-shifted programming; digital specialty channels; and 4K television programming. Further, it provides residential and small business local telephony services; voicemail, call waiting, and long distance; voice, data networking, Internet protocol (IP), and Ethernet services; private networking, Internet, IP voice, and cloud solutions; optical wave and multi-protocol label switching services; information technology and network technologies; cable access network services; telecommunications technical consulting services; and season games through television, smartphones, tablets, personal computers, and other streaming devices, as well as operates Ignite TV and Ignite TV app. Additionally, the company owns Toronto Blue Jays and the Rogers Centre event venue; and operates Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI, FX (Canada), FXX (Canada), and OLN television networks, as well as 52 AM and FM radio stations. It also offers Rogers and the Rogers World Elite Mastercard. The company was founded in 1960 and is headquartered in Toronto, Canada.

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.