Analyzing NTT Docomo (DCM) and Ceragon Networks (CRNT)
NTT Docomo (NASDAQ: CRNT) and Ceragon Networks (NASDAQ:CRNT) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.
NTT Docomo pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. Ceragon Networks does not pay a dividend. NTT Docomo pays out 24.1% of its earnings in the form of a dividend. NTT Docomo has raised its dividend for 2 consecutive years.
0.6% of NTT Docomo shares are held by institutional investors. Comparatively, 22.5% of Ceragon Networks shares are held by institutional investors. 19.0% of Ceragon Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares NTT Docomo and Ceragon Networks’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NTT Docomo||$42.41 billion||2.24||$6.07 billion||$1.62||15.80|
|Ceragon Networks||$332.03 million||0.64||$15.56 million||$0.18||15.22|
NTT Docomo has higher revenue and earnings than Ceragon Networks. Ceragon Networks is trading at a lower price-to-earnings ratio than NTT Docomo, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
NTT Docomo has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Ceragon Networks has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
This table compares NTT Docomo and Ceragon Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for NTT Docomo and Ceragon Networks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ceragon Networks has a consensus price target of $3.45, indicating a potential upside of 25.91%. Given Ceragon Networks’ stronger consensus rating and higher possible upside, analysts plainly believe Ceragon Networks is more favorable than NTT Docomo.
NTT Docomo beats Ceragon Networks on 10 of the 17 factors compared between the two stocks.
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.
About Ceragon Networks
Ceragon Networks Ltd. provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services worldwide. Its wireless backhaul solutions use microwave radio technology to transfer telecommunication traffic between base stations, small sells, and the core of the service provider's network. The company also provides wireless fronthaul solutions that use microwave technology for communication between LTE/LTE-advanced base band digital unit stations and remote radio heads. In addition, it offers IP-20 Platform solutions for various short-haul and long-haul applications, including IP-20N/IP-20A, IP-20GX, IP-20F, IP-20G, IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V. Further, the company provides network management system; and network and radio planning, site survey, solutions development, installation, maintenance, training, and other services. Ceragon Networks Ltd. provides its services to smart-phone applications, such as Internet browsing, social networking, image sharing, music, and video applications; oil and gas companies; public safety organizations; business and public institutions; broadcasters; energy utilities; and private communications networks. The company sells its products through direct sales, original equipment manufacturers, resellers, distributors, and system integrators. The company was formerly known as Giganet Ltd. and changed its name to Ceragon Networks Ltd. in September 2000. Ceragon Networks Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.
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