Financial Comparison: Ntt Data (OTC:NTDTY) and Compass (NYSE:COMP)

Ntt Data (OTC:NTDTY) and Compass (NYSE:COMP) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Ntt Data has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Compass has a beta of 2.95, suggesting that its share price is 195% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ntt Data and Compass”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ntt Data	$30.25 billion	0.87	$923.70 million	$0.70	26.70
Compass	$5.63 billion	0.79	-$321.30 million	($0.31)	-28.03

Ntt Data has higher revenue and earnings than Compass. Compass is trading at a lower price-to-earnings ratio than Ntt Data, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

67.1% of Compass shares are held by institutional investors. 6.3% of Compass shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ntt Data and Compass’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ntt Data	3.20%	5.16%	1.97%
Compass	-2.74%	-39.72%	-13.01%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ntt Data and Compass, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ntt Data	0	0	0	1	4.00
Compass	0	3	4	0	2.57

Compass has a consensus target price of $9.61, indicating a potential upside of 10.55%. Given Compass’ higher probable upside, analysts plainly believe Compass is more favorable than Ntt Data.

Summary

Ntt Data beats Compass on 10 of the 15 factors compared between the two stocks.

About Ntt Data

NTT DATA Group Corporation provides IT and business services worldwide. It offers cloud, cybersecurity, data and intelligence, salesforce, SAP, ServiceNow, and application development and management, as well as 5G services. The company also provides consulting, industry solutions, business process services, and IT modernization and managed services. It serves automotive, healthcare, life sciences, media, banking, and insurance industries. The company was formerly known as NTT DATA Corporation. NTT DATA Group Corporation was founded in 1988 and is headquartered in Tokyo, Japan. NTT DATA Group Corporation operates as a subsidiary of Nippon Telegraph and Telephone Corporation.

About Compass

Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality in the real estate industry. The company offers mobile apps that allow agents to manage their business anytime and anywhere, as well as designs consumer-grade user interfaces, automated and simplified workflows for agent-client interactions, and insight-rich dashboards and reports. It also provides full-service title and escrow/settlement services to real estate agents' clients, real estate companies, and financial institutions relating to the closing of home purchases as well as the refinancing of home loans; and Compass Concierge, a program in which home sellers access to capital to front the cost of home improvement services. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was incorporated in 2012 and is headquartered in New York, New York.