Head-To-Head Analysis: NTT Docomo (DCMYY) versus Its Peers

NTT Docomo (OTCMKTS: DCMYY) is one of 43 publicly-traded companies in the “Radio & t.v. communications equipment” industry, but how does it contrast to its rivals? We will compare NTT Docomo to similar businesses based on the strength of its analyst recommendations, institutional ownership, profitability, valuation, earnings, risk and dividends.

Profitability

This table compares NTT Docomo and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NTT Docomo 16.01% 13.35% 10.10%
NTT Docomo Competitors -313.12% -12.17% -8.74%

Volatility and Risk

NTT Docomo has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, NTT Docomo’s rivals have a beta of 1.01, suggesting that their average share price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares NTT Docomo and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NTT Docomo $596.18 billion $6.70 billion 14.27
NTT Docomo Competitors $18.71 billion $268.52 million 10.26

NTT Docomo has higher revenue and earnings than its rivals. NTT Docomo is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

NTT Docomo pays an annual dividend of $0.77 per share and has a dividend yield of 3.0%. NTT Docomo pays out 42.3% of its earnings in the form of a dividend. As a group, “Radio & t.v. communications equipment” companies pay a dividend yield of 1.9% and pay out 43.5% of their earnings in the form of a dividend. NTT Docomo is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

0.3% of NTT Docomo shares are owned by institutional investors. Comparatively, 43.7% of shares of all “Radio & t.v. communications equipment” companies are owned by institutional investors. 16.6% of shares of all “Radio & t.v. communications equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NTT Docomo and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NTT Docomo 0 0 0 0 N/A
NTT Docomo Competitors 375 1505 1991 115 2.46

As a group, “Radio & t.v. communications equipment” companies have a potential upside of 23.57%. Given NTT Docomo’s rivals higher possible upside, analysts plainly believe NTT Docomo has less favorable growth aspects than its rivals.

Summary

NTT Docomo beats its rivals on 8 of the 12 factors compared.

About NTT Docomo

NTT DOCOMO, INC., a telecommunications company, provides various mobile services in Japan and internationally. The company offers iPhone, iPad, smartphone, tablet, and feature phone products and services under the docomo name, as well as d POINT CLUB, a point program. It also provides technical and operational services to mobile operators and other companies. In addition, the company offers LTE, FOMA, and FOMA high-speed services; docomo Wi-Fi services; VoLTE voice call services; docomo Hikari, an optical Internet service; and docomo Shop services. It serves approximately 73 million customers through advanced wireless networks, including a LTE network and LTE-advanced network. The company was founded in 1991 and is headquartered in Tokyo, Japan. NTT DOCOMO, INC. is a subsidiary of Nippon Telegraph and Telephone Corporation.

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