Contrasting NTT DATA Corp/ADR (NTDTY) & RealNetworks (RNWK)

NTT DATA Corp/ADR (NASDAQ: RNWK) and RealNetworks (NASDAQ:RNWK) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for NTT DATA Corp/ADR and RealNetworks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NTT DATA Corp/ADR 0 0 0 0 N/A
RealNetworks 0 0 0 0 N/A

Volatility & Risk

NTT DATA Corp/ADR has a beta of 3.23, meaning that its stock price is 223% more volatile than the S&P 500. Comparatively, RealNetworks has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.

Profitability

This table compares NTT DATA Corp/ADR and RealNetworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NTT DATA Corp/ADR 2.76% 8.76% 3.44%
RealNetworks -18.52% -26.75% -18.60%

Dividends

NTT DATA Corp/ADR pays an annual dividend of $0.09 per share and has a dividend yield of 0.6%. RealNetworks does not pay a dividend. NTT DATA Corp/ADR pays out 17.6% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares NTT DATA Corp/ADR and RealNetworks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NTT DATA Corp/ADR $19.12 billion 1.03 $523.55 million $0.51 27.45
RealNetworks $78.72 million 1.39 -$16.30 million N/A N/A

NTT DATA Corp/ADR has higher revenue and earnings than RealNetworks.

Institutional & Insider Ownership

51.1% of RealNetworks shares are owned by institutional investors. 39.5% of RealNetworks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

NTT DATA Corp/ADR beats RealNetworks on 7 of the 11 factors compared between the two stocks.

About NTT DATA Corp/ADR

NTT DATA Corporation provides consulting, system development, and business information technology (IT) outsourcing services worldwide. The company operates through four segments: Public & Social Infrastructure, Financial, Enterprise & Solutions, and Global. It offers business consulting services, such as business strategy, business process optimization, and organizational change management; and IT consulting services, including IT strategy and governance, information and knowledge management, and program management office consulting services. The company also provides architecture strategy and design, application development and system integration, quality assurance and testing, application management and outsourcing, legacy modernization, mobility, and online services; embedded and real-time systems; and application development technologies. In addition, it offers enterprise application services comprising SAP, Oracle, and Microsoft application services; and enterprise resource planning, customer relationship management, supply chain management, business intelligence, and enterprise portal solutions. Further, the company provides business intelligence; analytics, predictive analytics, and data mining; enterprise performance management; big data; governance, risk, and compliance; information management; and data warehousing and data management services. Additionally, it offers infrastructure services, which include data center, IT security, application hosting, network, service desk support, contact center management, remote infrastructure management, and desktop services; and business process and infrastructure management outsourcing services. The company was formerly known as NTT Data Communications Systems Corporation and changed its name to NTT DATA Corporation in 1996. NTT DATA Corporation was founded in 1967 and is headquartered in Tokyo, Japan. NTT DATA Corporation is a subsidiary of Nippon Telegraph and Telephone Corporation.

About RealNetworks

RealNetworks, Inc. provides network-delivered digital media applications and services to manage, play, and share digital media. Its Consumer Media segment offers RealPlayer media player software, which enables consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. This segment also licenses its technology to electronic equipment, microchip, and integrated circuit manufacturers. The company's Mobile Services segment provides digital media services to mobile and online service providers as software as a service offerings, which include RealTimes, a photo and video sharing platform, offers to wireless carriers for integration in their hosted cloud solutions; Kontxt, a text message management, anti-spam, and classification product; ringback tone that enables callers to hear subscriber-selected music or messages instead of the traditional electronic ringing; intercarrier messaging services; and business intelligence, and subscriber management and billing for the carriers. Its Games segment develops, publishes, and distributes casual games, including time-management, board, card, puzzle, word, and hidden-object games. It offers its casual games through mobile devices, digital downloads, and subscription play. The company also develops and markets software products and services that enable the creation, distribution, and consumption of digital media, including audio and video. The company provides its products and services through direct and indirect channels comprising public relations, trade shows, events, and speaking opportunities; online channels; third party distribution partners; and third-party distribution channels, such as application storefronts, search engines, online portals, and content publishers. RealNetworks, Inc. was founded in 1994 and is headquartered in Seattle, Washington.

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