ARRIS International (NASDAQ:ARRS) and NTT Docomo (OTCMKTS:DCMYY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.
Volatility & Risk
ARRIS International has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, NTT Docomo has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.
This table compares ARRIS International and NTT Docomo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
83.7% of ARRIS International shares are held by institutional investors. Comparatively, 0.1% of NTT Docomo shares are held by institutional investors. 1.0% of ARRIS International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares ARRIS International and NTT Docomo’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ARRIS International||$6.74 billion||0.82||$113.74 million||$2.53||12.51|
|NTT Docomo||$43.67 billion||1.91||$5.99 billion||$1.69||13.32|
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.
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.
This is a summary of current recommendations and price targets for ARRIS International and NTT Docomo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ARRIS International presently has a consensus target price of $29.05, suggesting a potential downside of 8.26%. Given ARRIS International’s higher probable upside, research analysts clearly believe ARRIS International is more favorable than NTT Docomo.
ARRIS International beats NTT Docomo on 8 of the 15 factors compared between the two stocks.
About ARRIS International
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.
About NTT Docomo
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.
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