NTT Docomo (OTCMKTS:DCMYY) and ARRIS International (NASDAQ:ARRS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares NTT Docomo and ARRIS International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NTT Docomo $43.67 billion 1.95 $5.99 billion $1.69 13.60
ARRIS International $6.74 billion 0.82 $113.74 million $2.53 12.51

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

Dividends

NTT Docomo pays an annual dividend of $0.73 per share and has a dividend yield of 3.2%. ARRIS International does not pay a dividend. NTT Docomo pays out 43.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and target prices for NTT Docomo and ARRIS International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NTT Docomo 0 0 0 0 N/A
ARRIS International 0 7 1 0 2.13

ARRIS International has a consensus target price of $29.05, indicating a potential downside of 8.26%. Given ARRIS International’s higher possible upside, analysts plainly believe ARRIS International is more favorable than NTT Docomo.

Profitability

This table compares NTT Docomo and ARRIS International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NTT Docomo 13.70% 11.27% 8.74%
ARRIS International 1.69% 15.14% 6.32%

Insider & Institutional Ownership

0.1% of NTT Docomo shares are owned by institutional investors. Comparatively, 83.7% of ARRIS International shares are owned by institutional investors. 1.0% of ARRIS International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

NTT Docomo has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, ARRIS International has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Summary

ARRIS International beats NTT Docomo on 8 of the 15 factors compared between the two stocks.

NTT Docomo Company Profile

NTT DOCOMO, INC., a telecommunications company, provides various mobile services in Japan and internationally. The company offers iPhone, iPad, smartphone, tablet, and feature phone products and services under the docomo name, as well as d POINT CLUB, a point program. It also provides technical and operational services to mobile operators and other companies. In addition, the company offers LTE, FOMA, and FOMA high-speed services; docomo Wi-Fi services; VoLTE voice call services; docomo Hikari, an optical Internet service; and docomo Shop services. It serves approximately 73 million customers through advanced wireless networks, including a LTE network and LTE-advanced network. The company was founded in 1991 and is headquartered in Tokyo, Japan. NTT DOCOMO, INC. is a subsidiary of Nippon Telegraph and Telephone Corporation.

ARRIS International Company Profile

ARRIS International plc, together with its subsidiaries, provides entertainment, communications, and networking technology and solutions worldwide. The company's Customer Premises Equipment segment offers digital subscriber lines and cable modems, broadband gateways, set-top boxes, and video gateways. Its Network & Cloud segment provides cable modem termination system, converged cable access platform, passive optical network, service provider and programmer equipment, Ad insertion technologies, and equipment installed in the ground or aerial that supports the transmission of signals, as well as equipment used to initiate the distribution of content-carrying signals. This segment also offers technical support and professional services; software products that enable providers to deliver content and advertising services; network management products that collect information from the broadband network; and customer experience management solutions, as well as network surveillance and issue correlation software and services. The company's Enterprise Networks segment provides wired Ethernet switches; and indoor, outdoor, and special-purpose Wi-Fi access points, as well as accessories, such as antennas. This segment also offers SmartCell Insight, a big data Wi-Fi analytics and reporting platform; ZonePlanner, a Wi-Fi planning and modeling software; Smart Positioning Technology, a cloud-based smart Wi-Fi location-based services platform; Cloudpath Wi-Fi device; mobile apps for controllers, cloud Wi-Fi, location, and performance testing; Ruckus Cloud Wi-Fi, a wireless local area network management-as-a-service; SmartZone, a carrier-grade wireless access and management products; and ZoneDirector, a smart Wi-Fi controller, as well as controller-less Smart Wi-Fi access points. The company was formerly known as ARRIS Group, Inc. and changed its name to ARRIS International plc in January 2016. ARRIS International plc is headquartered in Suwanee, Georgia.

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