Am�rica M�vil (NYSE: AMX) and NTT Docomo (NYSE:DCM) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Insider and Institutional Ownership
7.7% of Am�rica M�vil shares are held by institutional investors. Comparatively, 0.6% of NTT Docomo shares are held by institutional investors. 1.0% of Am�rica M�vil shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Am�rica M�vil and NTT Docomo, as reported by MarketBeat.
||Strong Buy Ratings
Am�rica M�vil currently has a consensus target price of $19.50, suggesting a potential upside of 0.31%. Given Am�rica M�vil’s stronger consensus rating and higher possible upside, analysts plainly believe Am�rica M�vil is more favorable than NTT Docomo.
Valuation and Earnings
This table compares Am�rica M�vil and NTT Docomo’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
NTT Docomo has lower revenue, but higher earnings than Am�rica M�vil. NTT Docomo is trading at a lower price-to-earnings ratio than Am�rica M�vil, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Am�rica M�vil has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, NTT Docomo has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.
This table compares Am�rica M�vil and NTT Docomo’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Am�rica M�vil pays an annual dividend of $0.17 per share and has a dividend yield of 0.9%. NTT Docomo pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. Am�rica M�vil pays out 25.0% of its earnings in the form of a dividend. NTT Docomo pays out 24.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NTT Docomo is clearly the better dividend stock, given its higher yield and lower payout ratio.
Am�rica M�vil beats NTT Docomo on 9 of the 16 factors compared between the two stocks.
Am�rica M�vil Company Profile
América Móvil, S.A.B. de C.V. provides telecommunications services in Mexico and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It also provides data services, such as Internet access, messaging, and other wireless entertainment and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and data center, data administration, and hosting services to residential and corporate clients, as well as residential broadband services. In addition, it offers satellite pay television (TV) services through direct-to-home technology through Claro TV brand; and cable TV through Net Serviços brand. Further, the company sells equipment, accessories, and computers; and telephone directories, publishing, call center, wireless security, advertising, media, software development, mobile payment, machine-to-machine, mobile banking, virtual private network, video call, and personal communications services. Additionally, it sells video, audio, and other media content through the Internet directly from the content provider to the viewer or end user. The company sells its products and services through a network of retailers and service centers to retail customers; and through sales force to corporate customers. América Móvil, S.A.B. de C.V. was founded in 2000 and is based in Mexico City, Mexico.
NTT Docomo Company Profile
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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