Reviewing Sprint (S) & IDT (IDT)

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Sprint (NYSE: S) and IDT (NYSE:IDT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Insider and Institutional Ownership

12.7% of Sprint shares are held by institutional investors. Comparatively, 46.8% of IDT shares are held by institutional investors. 0.2% of Sprint shares are held by company insiders. Comparatively, 21.8% of IDT shares are held by company 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.

Valuation and Earnings

This table compares Sprint and IDT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sprint $32.41 billion 0.68 $7.39 billion N/A N/A
IDT $1.50 billion 0.11 $8.17 million N/A N/A

Sprint has higher revenue and earnings than IDT.

Profitability

This table compares Sprint and IDT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprint 22.80% 0.69% 0.19%
IDT -0.89% 0.06% 0.01%

Dividends

IDT pays an annual dividend of $0.36 per share and has a dividend yield of 5.6%. Sprint does not pay a dividend.

Risk & Volatility

Sprint has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, IDT has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sprint and IDT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprint 4 16 2 0 1.91
IDT 0 1 0 0 2.00

Sprint currently has a consensus price target of $5.78, suggesting a potential upside of 5.31%. Given Sprint’s higher possible upside, equities research analysts plainly believe Sprint is more favorable than IDT.

Summary

Sprint beats IDT on 8 of the 13 factors compared between the two stocks.

Sprint Company Profile

Sprint Corporation, through its subsidiaries, provides various wireless and wireline communications products and services to consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. The company operates in two segments, Wireless and Wireline. The Wireless segment offers wireless data communication services, including mobile productivity applications, such as Internet access, messaging, and email services; wireless photo and video offerings; location-based capabilities comprising asset and fleet management, dispatch services, and navigation tools; and mobile entertainment applications. It also provides wireless voice communications services that include local and long-distance wireless voice services, as well as voicemail, call waiting, three-way calling, caller identification, directory assistance, and call forwarding services. In addition, this segment offers voice and data services internationally through roaming arrangements; and customized wireless services to large companies and government agencies, as well as sells wireless devices, broadband devices, connected devices, and accessories to agents and other third-party distributors. The Wireline segment provides wireline voice and data communications, including domestic and international data communications using various protocols, such as multiprotocol label switching technologies, Internet protocol (IP), managed network services, Voice over IP, session initiated protocol, and traditional voice services to other communications companies, and targeted business subscribers. Sprint Corporation offers its services under the Sprint, Boost Mobile, Virgin Mobile, and Assurance Wireless brands. It offers products through its 300 branded retail locations in the Southern California region. The company was founded in 1899 and is headquartered in Overland Park, Kansas. Sprint Corporation is a subsidiary of SoftBank Group Corp.

IDT Company Profile

IDT Corporation, through its subsidiaries, operates primarily in the telecommunications and payment industries in the United States and internationally. It operates in three segments: Telecom Platform Services, Unified Communications as a Service, and Consumer Phone Services. The Telecom Platform Services segment offers retail telecommunication products, including international long-distance calling products primarily to foreign-born communities; payment offerings, such as international and domestic airtime top-up, and international money transfer services; and wholesale international long distance traffic termination services for tier 1 fixed line and mobile network operators, as well as for other service providers. The Unified Communications as a Service segment provides voice over Internet protocol products and services under the net2phone brand name, including cable telephony services; cloud-based private branch exchange (PBX) services to enterprise customers primarily through value-added resellers, service providers, telecom agents, and managed service providers; session initiation protocol trunking services that support inbound and outbound domestic and international calling from an IP PBX; and PicuP, an automated business phone service that answers, routes, and manages voice calls. This segment also offers its services through distributors, system integrators, and master agents. The Consumer Phone Services segment provides bundled local/long distance phone services, including unlimited local, regional toll and domestic long distance calling, and calling features under the IDT America brand name to residential customers. As of July 31, 2017, this segment had approximately 3,500 active customers for its bundled local/long distance plans and approximately 14,500 customers for its long distance-only plans. The company is also involved in real estate holdings and other businesses. IDT Corporation was founded in 1990 and is headquartered in Newark, New Jersey.

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