Analyzing Meru Networks (MERU) & NTT DOCOMO (DCM)

Meru Networks (NASDAQ: MERU) and NTT DOCOMO (NYSE:DCM) are both wireless telecommunications services – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Meru Networks and NTT DOCOMO, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meru Networks 0 0 0 0 N/A
NTT DOCOMO 0 3 0 0 2.00

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Meru Networks N/A N/A N/A ($0.87) -1.86
NTT DOCOMO $42.41 billion 2.26 $6.07 billion $1.51 16.07

NTT DOCOMO has higher revenue and earnings than Meru Networks. Meru Networks is trading at a lower price-to-earnings ratio than NTT DOCOMO, 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%. Meru Networks does not pay a dividend. NTT DOCOMO pays out 23.8% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Meru Networks -46.15% N/A -86.56%
NTT DOCOMO 13.57% 10.97% 8.30%

Volatility and Risk

Meru Networks has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, NTT DOCOMO has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Summary

NTT DOCOMO beats Meru Networks on 7 of the 9 factors compared between the two stocks.

Meru Networks Company Profile

Meru Networks, Inc. (Meru) develops and markets a virtualized Wireless Local Area Network (WLAN) solution. The Company’s solution is built around its System Director Operating System, which runs on its controllers and access points. The Company offers additional products designed to deliver network management, diagnostics and security. The Company also offers support services related to its products, professional services, and training. Its products and services are sold through value added resellers, and distributors, as well as its sales force. Its System Director Operating System forms the core of its virtualized WLAN solution. It provides a family of controllers that run its System Director Operating System and work in conjunction with its access points. Its Wireless Fidelity (Wi-Fi) certified access points provide network connectivity for wireless devices. Its bring-your-own-device (BYOD) and policy management solutions are designed to automate secure guest access.

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.

What are top analysts saying about Meru Networks Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Meru Networks Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit