LICT (OTCMKTS:LICT) and Nippon Telegraph & Telephone (OTCMKTS:NTTYY) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

1.4% of LICT shares are owned by institutional investors. Comparatively, 0.2% of Nippon Telegraph & Telephone shares are owned by institutional investors. 26.1% of LICT shares are owned by 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.

Analyst Ratings

This is a summary of current recommendations for LICT and Nippon Telegraph & Telephone, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LICT 0 0 0 0 N/A
Nippon Telegraph & Telephone 0 2 0 0 2.00

Dividends

Nippon Telegraph & Telephone pays an annual dividend of $1.23 per share and has a dividend yield of 2.9%. LICT does not pay a dividend. Nippon Telegraph & Telephone pays out 29.9% of its earnings in the form of a dividend.

Profitability

This table compares LICT and Nippon Telegraph & Telephone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LICT 19.98% N/A N/A
Nippon Telegraph & Telephone 8.13% 8.21% 4.47%

Valuation and Earnings

This table compares LICT and Nippon Telegraph & Telephone’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LICT $115.82 million 2.72 $25.59 million N/A N/A
Nippon Telegraph & Telephone $106.55 billion 0.80 $8.19 billion $4.12 10.43

Nippon Telegraph & Telephone has higher revenue and earnings than LICT.

Volatility and Risk

LICT has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Nippon Telegraph & Telephone has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.

Summary

LICT beats Nippon Telegraph & Telephone on 7 of the 12 factors compared between the two stocks.

LICT Company Profile

LICT Corporation, together with its subsidiaries, provides broadband and voice services to residential, commercial, and governmental customers. The company offers high speed broadband services, including Internet access through copper-based digital subscriber lines (DSL), fiber optic facilities, fixed wireless, and cable modems; video services through traditional cable television services and Internet protocol television services; voice over Internet protocol; wireless communications; and other related telecommunications services. It operates in California, Illinois, Iowa, Kansas, Michigan, Nevada, New Hampshire, New Mexico, Oregon, Utah, and Wisconsin. As of December 31, 2017, it had a total of 33,661 voice lines, including access and competitive local exchange carrier (CLEC); 4,358 miles of fiber optic cable; 11,702 miles of copper cable; and 605 miles of coaxial cable. The company was formerly known as Lynch Interactive Corporation and changed its name to LICT Corporation in March 2007. LICT Corporation was incorporated in 1996 and is based in Rye, New York.

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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