Critical Survey: Orange (OTC:ORANY) vs. Nippon Telegraph and Telephone (OTCMKTS:NTTYY)

Orange (OTC:ORANY) and Nippon Telegraph and Telephone (OTCMKTS:NTTYY) are both large-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Profitability

This table compares Orange and Nippon Telegraph and Telephone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orange	N/A	N/A	N/A
Nippon Telegraph and Telephone	8.16%	10.04%	3.73%

Volatility and Risk

Orange has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Nippon Telegraph and Telephone has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Institutional and Insider Ownership

12.2% of Orange shares are held by institutional investors. Comparatively, 0.1% of Nippon Telegraph and Telephone shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Orange and Nippon Telegraph and Telephone, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange	0	1	0	0	2.00
Nippon Telegraph and Telephone	0	0	0	0	0.00

Valuation & Earnings

This table compares Orange and Nippon Telegraph and Telephone”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange	$43.57 billion	0.82	$2.35 billion	N/A	N/A
Nippon Telegraph and Telephone	$92.65 billion	0.92	$8.83 billion	$2.20	11.33

Nippon Telegraph and Telephone has higher revenue and earnings than Orange.

Dividends

Orange pays an annual dividend of $0.42 per share and has a dividend yield of 3.1%. Nippon Telegraph and Telephone pays an annual dividend of $0.64 per share and has a dividend yield of 2.6%. Nippon Telegraph and Telephone pays out 29.1% of its earnings in the form of a dividend.

Summary

Nippon Telegraph and Telephone beats Orange on 7 of the 11 factors compared between the two stocks.

About Orange

Orange S.A. provides fixed telephony, mobile telecommunication, data transmission, and other value-added services to individuals, professionals, and large companies in France and internationally. It offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as B2B fixed solutions and networks services, including voice and data services. The company also sells handsets, broadband equipment, connected devices, and accessories. In addition, it provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, the company offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors, brokers, and operators. It markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was incorporated in 1991 and is headquartered in Issy-les-Moulineaux, France.

About Nippon Telegraph and Telephone

Nippon Telegraph and Telephone Corporation operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. The Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers consulting, system and software development, network system, cloud, global data center, and related services. The Others segment engages in the real estate, energy, and other businesses. The company was founded in 1952 and is headquartered in Tokyo, Japan.