Frontier Communications (NASDAQ:FTR) and Nippon Telegraph & Telephone (OTCMKTS:NTTYY) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
This table compares Frontier Communications and Nippon Telegraph & Telephone’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nippon Telegraph & Telephone||7.20%||7.29%||3.91%|
77.8% of Frontier Communications shares are held by institutional investors. Comparatively, 0.2% of Nippon Telegraph & Telephone shares are held by institutional investors. 1.7% of Frontier Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Nippon Telegraph & Telephone pays an annual dividend of $1.67 per share and has a dividend yield of 3.6%. Frontier Communications does not pay a dividend. Frontier Communications has increased its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Frontier Communications and Nippon Telegraph & Telephone’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Frontier Communications||$8.61 billion||0.01||-$643.00 million||($1.34)||-0.84|
|Nippon Telegraph & Telephone||$107.88 billion||0.84||$7.69 billion||N/A||N/A|
Nippon Telegraph & Telephone has higher revenue and earnings than Frontier Communications.
This is a breakdown of recent ratings and price targets for Frontier Communications and Nippon Telegraph & Telephone, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nippon Telegraph & Telephone||0||1||0||0||2.00|
Frontier Communications currently has a consensus price target of $2.82, suggesting a potential upside of 149.81%. Given Frontier Communications’ higher probable upside, equities research analysts clearly believe Frontier Communications is more favorable than Nippon Telegraph & Telephone.
Volatility and Risk
Frontier Communications has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Nippon Telegraph & Telephone has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.
Nippon Telegraph & Telephone beats Frontier Communications on 9 of the 15 factors compared between the two stocks.
Frontier Communications Company Profile
Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers in the United States. It offers broadband, video, voice, and other services and products through a combination of fiber and copper-based networks to consumer customers. The company also provides Ethernet and traditional circuit-based services; software defined wide area network, managed Wi-Fi and cloud IT solutions, voice and Unified Communications as a Service (UCaaS), and Voice over Internet Protocol (VoIP) services, as well as hardware and network solutions and services to small and medium business, and large enterprises. In addition, it offers data and Internet services; wireless broadband services; satellite TV video services; voice services, including data-based VoIP, UCaaS, and long distance and voice messaging services; and a package of communications services. Further, the company provides a range of access services that allow other carriers to use facilities to originate and terminate their local and long-distance voice traffic. It serves approximately 4.5 million customers and 3.7 million broadband subscribers in 29 states. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was founded in 1927 and is based in Norwalk, Connecticut.
Nippon Telegraph & Telephone Company Profile
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.
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