Financial Analysis: Fusion Telecommunications International (FSNN) versus Nippon Telegraph & Telephone (NTTYY)

Fusion Telecommunications International (NASDAQ:FSNN) and Nippon Telegraph & Telephone (OTCMKTS:NTTYY) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Fusion Telecommunications International and Nippon Telegraph & Telephone’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion Telecommunications International -13.27% N/A -9.99%
Nippon Telegraph & Telephone 7.20% 7.30% 3.94%

Analyst Ratings

This is a summary of current recommendations for Fusion Telecommunications International and Nippon Telegraph & Telephone, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion Telecommunications International 0 1 1 0 2.50
Nippon Telegraph & Telephone 0 1 0 0 2.00

Fusion Telecommunications International currently has a consensus target price of $0.75, indicating a potential upside of 762.07%. Given Fusion Telecommunications International’s stronger consensus rating and higher possible upside, analysts plainly believe Fusion Telecommunications International is more favorable than Nippon Telegraph & Telephone.

Valuation & Earnings

This table compares Fusion Telecommunications International and Nippon Telegraph & Telephone’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fusion Telecommunications International $150.53 million 0.05 -$14.01 million ($1.09) -0.08
Nippon Telegraph & Telephone $107.88 billion 0.81 $7.76 billion $4.00 11.06

Nippon Telegraph & Telephone has higher revenue and earnings than Fusion Telecommunications International. Fusion Telecommunications International is trading at a lower price-to-earnings ratio than Nippon Telegraph & Telephone, indicating that it is currently the more affordable of the two stocks.

Dividends

Nippon Telegraph & Telephone pays an annual dividend of $1.67 per share and has a dividend yield of 3.8%. Fusion Telecommunications International does not pay a dividend. Nippon Telegraph & Telephone pays out 41.8% of its earnings in the form of a dividend.

Risk and Volatility

Fusion Telecommunications International has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Nippon Telegraph & Telephone has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Institutional & Insider Ownership

14.3% of Fusion Telecommunications International shares are owned by institutional investors. Comparatively, 0.2% of Nippon Telegraph & Telephone shares are owned by institutional investors. 19.1% of Fusion Telecommunications International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Nippon Telegraph & Telephone beats Fusion Telecommunications International on 9 of the 16 factors compared between the two stocks.

Fusion Telecommunications International Company Profile

Fusion Connect, Inc. provides integrated cloud solutions to small, medium, and large businesses. Its proprietary service platform enables the integration of solutions in the cloud, including cloud voice and unified communications, contact center, cloud connectivity, and cloud computing, as well as additional cloud services, such as storage and security. The company serves associations, governments, contact centers, and healthcare and legal industries. Fusion Connect, Inc. is based in New York, New York.

Nippon Telegraph & Telephone Company Profile

Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, system integration, and other services in Japan and internationally. It operates through five segments: Regional Communications Business, Long Distance and International Communications Business, Mobile Communications Business, Data Communications Business, and Other Business. The company offers inter-prefectural communications services, services related to the international communications and solutions business, and related services; mobile phone and related services; and network system and system integration services. It also provides IT system building and maintenance support for corporations; professional security, ICT, data center-related, teleconference, Web conference, video conference, Internet connection, video distribution, and smart life area services; and consulting, and system design and development services. In addition, the company engages in the acquisition, development, leasing, and management of real estate properties; lease and installment sales of telecommunications-related devices; billing and collection of charges for communications and other services; and design, management, and maintenance of buildings, equipment, and electric power facilities. Further, it is involved in the development, production, operation, and maintenance of information communications systems and software; and technology transfer and consulting activities, as well as provision of credit card transaction settlement services. Additionally, the company operates office, retail, and residential properties under the Wellith brand; hotels and resorts; and shared-office properties that include daycare facilities and office spaces. As of March 31, 2018, it had 19,869 thousand fixed line subscriptions. The company was founded in 1952 and is headquartered in Tokyo, Japan.

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