Fujitsu (OTCMKTS:FJTSY) vs. Terna (OTCMKTS:TEZNY) Critical Review

Fujitsu (OTCMKTS:FJTSY) and Terna (OTCMKTS:TEZNY) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Fujitsu and Terna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fujitsu	7.22%	14.72%	8.10%
Terna	N/A	N/A	N/A

Volatility and Risk

Fujitsu has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Terna has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of Fujitsu shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Fujitsu and Terna”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fujitsu	$26.02 billion	1.52	$1.76 billion	$0.50	41.86
Terna	$3.08 billion	5.59	$933.94 million	N/A	N/A

Fujitsu has higher revenue and earnings than Terna.

Analyst Ratings

This is a summary of recent recommendations for Fujitsu and Terna, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	0	0	0	N/A
Terna	0	0	0	0	N/A

Dividends

Fujitsu pays an annual dividend of $0.09 per share and has a dividend yield of 0.4%. Terna pays an annual dividend of $0.97 per share and has a dividend yield of 3.8%. Fujitsu pays out 18.0% of its earnings in the form of a dividend.

Summary

Fujitsu beats Terna on 7 of the 10 factors compared between the two stocks.

About Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC's, desktop PC's, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.

About Terna

Terna S.p.A., together with its subsidiaries, provides electricity transmission and dispatching services in Italy, other Euro-area countries, and internationally. It operates through Regulated, Non-Regulated, and International segments. The company is involved in the design, construction, management, development, operation, and maintenance of national transmission grid; dispatching and metering; and construction of storage systems. It also supplies transformers and cables; provides energy and connectivity services; and installs and operates interconnecting lines. In addition, the company designs, produces, commercializes, and repairs power transformers for electricity transmission and distribution grids; industrial transformers for the steel and metals industries; special transformers for convertors used in electrochemical production; produces and sells marine and terrestrial cables; develops renewable energy projects; and undertakes private interconnector projects. Terna S.p.A. was founded in 1962 and is based in Rome, Italy.