Cellcom Israel (NYSE: CEL) and NTT DOCOMO (NYSE:DCM) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Profitability

This table compares Cellcom Israel and NTT DOCOMO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cellcom Israel 3.12% 8.94% 1.90%
NTT DOCOMO 13.90% 11.44% 8.65%

Volatility and Risk

Cellcom Israel has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, NTT DOCOMO has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Insider and Institutional Ownership

5.5% of Cellcom Israel shares are owned by institutional investors. Comparatively, 0.5% of NTT DOCOMO shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cellcom Israel and NTT DOCOMO’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cellcom Israel $1.11 billion 0.87 $210.25 million $0.32 29.91
NTT DOCOMO $42.61 billion 2.13 $12.91 billion $1.58 15.52

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

Dividends

NTT DOCOMO pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Cellcom Israel does not pay a dividend. NTT DOCOMO pays out 22.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cellcom Israel and NTT DOCOMO, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 1 1 0 0 1.50
NTT DOCOMO 0 3 1 0 2.25

Summary

NTT DOCOMO beats Cellcom Israel on 10 of the 14 factors compared between the two stocks.

Cellcom Israel Company Profile

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

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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