IDT (NYSE: IDT) and Verizon Communications (NYSE:VZ) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Valuation & Earnings
This table compares IDT and Verizon Communications’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|IDT||$1.50 billion||0.17||$8.17 million||($0.66)||-15.68|
|Verizon Communications||$125.98 billion||1.72||$13.13 billion||$3.90||13.65|
Volatility & Risk
IDT has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Verizon Communications has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
IDT pays an annual dividend of $0.76 per share and has a dividend yield of 7.3%. Verizon Communications pays an annual dividend of $2.36 per share and has a dividend yield of 4.4%. IDT pays out -115.2% of its earnings in the form of a dividend. Verizon Communications pays out 60.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Verizon Communications has raised its dividend for 10 consecutive years. IDT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
52.8% of IDT shares are held by institutional investors. Comparatively, 63.2% of Verizon Communications shares are held by institutional investors. 21.8% of IDT shares are held by company insiders. Comparatively, 0.1% of Verizon Communications shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for IDT and Verizon Communications, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Verizon Communications has a consensus price target of $51.59, suggesting a potential downside of 3.07%. Given Verizon Communications’ higher probable upside, analysts clearly believe Verizon Communications is more favorable than IDT.
This table compares IDT and Verizon Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Verizon Communications beats IDT on 12 of the 16 factors compared between the two stocks.
IDT Company Profile
IDT Corporation is a holding company with operations primarily in the telecommunications and payment industries. The Company’s segments include Telecom Platform Services, Consumer Phone Services and All Other. The Company’s Telecom Platform Services segment provides retail telecommunications and payment offerings, as well as wholesale international long distance traffic termination. The Telecom Platform Services segment markets and distributes multiple communications and payment services across four businesses: Retail Communications, Wholesale Carrier Services, Payment Services and Hosted Platform Solutions. The Company’s Consumer Phone Services segment provides consumer local and long distance services in certain states of the United States. The Telecom Platform Services and Consumer Phone Services segments comprise the Company’s IDT Telecom division. The All Other segment includes its real estate holdings and other smaller businesses.
Verizon Communications Company Profile
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. The Wireline segment offers voice, data and video communications products and services, such as broadband video, data center and cloud services, security and managed network services, and local and long distance voice services. The Company has combined Yahoo! Inc.’s operating assets with its existing AOL Inc. business to create a new subsidiary, Oath Inc., owns a diverse house of more than 50 media and technology brands. The Oath portfolio includes HuffPost, Yahoo Sports, AOL.com, MAKERS, Tumblr, Yahoo Finance and Yahoo Mail.
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