Vodafone Group PLC (VOD) versus NTT DOCOMO (DCM) Critical Analysis
Vodafone Group PLC (NASDAQ: VOD) and NTT DOCOMO (NYSE:DCM) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Vodafone Group PLC pays an annual dividend of $1.64 per share and has a dividend yield of 5.8%. NTT DOCOMO pays an annual dividend of $0.68 per share and has a dividend yield of 3.0%. NTT DOCOMO pays out 43.0% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Vodafone Group PLC and NTT DOCOMO’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vodafone Group PLC||$56.98 billion||1.33||$13.77 billion||N/A||N/A|
|NTT DOCOMO||$42.18 billion||2.02||$12.78 billion||$1.58||14.53|
Vodafone Group PLC has higher revenue and earnings than NTT DOCOMO.
This is a breakdown of current ratings for Vodafone Group PLC and NTT DOCOMO, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vodafone Group PLC||1||4||6||1||2.58|
Vodafone Group PLC presently has a consensus target price of $31.52, indicating a potential upside of 10.60%. Given Vodafone Group PLC’s stronger consensus rating and higher probable upside, equities analysts clearly believe Vodafone Group PLC is more favorable than NTT DOCOMO.
Volatility & Risk
Vodafone Group PLC has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, NTT DOCOMO has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.
This table compares Vodafone Group PLC and NTT DOCOMO’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vodafone Group PLC||N/A||N/A||N/A|
Insider and Institutional Ownership
10.2% of Vodafone Group PLC shares are owned by institutional investors. Comparatively, 0.5% of NTT DOCOMO shares are owned by institutional investors. 1.0% of Vodafone Group PLC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Vodafone Group PLC beats NTT DOCOMO on 11 of the 15 factors compared between the two stocks.
About Vodafone Group PLC
Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.
About NTT DOCOMO
NTT DOCOMO, INC. (DOCOMO) is a mobile telecommunications carrier. The Company operates through three segments: telecommunications business, smart life business and other businesses. The telecommunications business segment includes mobile phone services (long-term evolution (LTE) (Xi) services and freedom of mobile multimedia access (FOMA) services), optical-fiber broadband service, satellite mobile communications services, international services and equipment sales related to these services. The smart life business segment includes video and music distribution, electronic books and other services offered through its dmarket portal, as well as finance/payment services, shopping services and various other services to support the Company’s customers’ daily lives. Its other businesses segment primarily includes Mobile Device Protection Service, as well as the development, sale and maintenance of information technology (IT) systems.
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