NTT Docomo (DCM) versus ViaSat (NASDAQ:VSAT) Head-To-Head Review

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

Analyst Recommendations

This is a breakdown of current recommendations for NTT Docomo and ViaSat, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NTT Docomo 1 2 0 0 1.67
ViaSat 2 3 4 0 2.22

ViaSat has a consensus price target of $69.75, suggesting a potential upside of 11.03%. Given ViaSat’s stronger consensus rating and higher possible upside, analysts plainly believe ViaSat is more favorable than NTT Docomo.

Valuation and Earnings

This table compares NTT Docomo and ViaSat’s gross revenue, earnings per share (EPS) 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
ViaSat $1.59 billion 2.35 -$67.30 million ($0.86) -73.05

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

Insider and Institutional Ownership

0.6% of NTT Docomo shares are held by institutional investors. 8.1% of ViaSat shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
NTT Docomo 15.25% 12.38% 9.34%
ViaSat -5.58% -3.97% -2.17%

Volatility and Risk

NTT Docomo has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, ViaSat has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Dividends

NTT Docomo pays an annual dividend of $0.39 per share and has a dividend yield of 1.5%. ViaSat 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.

Summary

NTT Docomo beats ViaSat on 10 of the 17 factors compared between the two stocks.

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.

ViaSat Company Profile

Viasat, Inc. provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband Internet access and voice over Internet protocol services to consumers and businesses; in-flight Internet and aviation software services to commercial airlines; and mobile broadband services comprising network management and high-speed Internet connectivity services for customers using airborne, maritime, and ground mobile satellite systems. As of March 31, 2018, this segment provided broadband Internet services to approximately 576,000 subscribers. Its Commercial Networks segment offers fixed satellite networks comprising satellite network infrastructure and ground terminals designed to access Ka-band broadband services; mobile broadband satellite communication systems; and antenna systems for terrestrial and satellite applications, such as earth imaging, remote sensing, mobile satellite communication, Ka-band earth stations, and other multi-band antennas. This segment also provides design and technology services, including analysis, design, development, and specification of satellites and ground systems; ASIC and MMIC design; and network function virtualization. The company's Government Systems segment offers government satellite communication systems, including various mobile and fixed broadband modems, terminals, network access control systems, and antenna systems; cybersecurity and information assurance products and services; and tactical radio and information distribution systems to enable real-time collection and dissemination of secure real-time digital information between command centers, communications nodes, ground and maritime platforms, and airborne intelligence and defense platforms. Viasat, Inc. was founded in 1986 and is headquartered in Carlsbad, California.

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