Comparing Array Digital Infrastructure (NYSE:AD) and NTT (OTCMKTS:NTTYY)

Array Digital Infrastructure (NYSE:AD) and NTT (OTCMKTS:NTTYY) are both communication services companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

18.0% of Array Digital Infrastructure shares are held by institutional investors. Comparatively, 0.1% of NTT shares are held by institutional investors. 0.1% of Array Digital Infrastructure shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Array Digital Infrastructure has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, NTT has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500.

Profitability

This table compares Array Digital Infrastructure and NTT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Array Digital Infrastructure	250.79%	8.52%	4.15%
NTT	7.17%	10.43%	2.45%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Array Digital Infrastructure and NTT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Array Digital Infrastructure	0	3	3	0	2.50
NTT	0	1	0	1	3.00

Array Digital Infrastructure currently has a consensus price target of $49.20, suggesting a potential upside of 36.89%. Given Array Digital Infrastructure’s higher possible upside, equities analysts plainly believe Array Digital Infrastructure is more favorable than NTT.

Earnings and Valuation

This table compares Array Digital Infrastructure and NTT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Array Digital Infrastructure	$162.96 million	19.08	$48.76 million	$6.20	5.80
NTT	$95.72 billion	0.87	$6.84 billion	$2.09	12.20

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

Summary

Array Digital Infrastructure beats NTT on 9 of the 15 factors compared between the two stocks.

About Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.

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.