Data Storage (NASDAQ:DTST – Get Free Report) and IDT (NYSE:IDT – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Earnings and Valuation
This table compares Data Storage 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 | |
| Data Storage | $1.38 million | 5.26 | $19.20 million | ($0.76) | -4.08 |
| IDT | $1.30 billion | 1.57 | $86.63 million | $3.47 | 23.60 |
IDT has higher revenue and earnings than Data Storage. Data Storage is trading at a lower price-to-earnings ratio than IDT, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Data Storage has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, IDT has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Data Storage and IDT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Data Storage | 1 | 0 | 0 | 0 | 1.00 |
| IDT | 0 | 1 | 2 | 0 | 2.67 |
IDT has a consensus price target of $85.00, suggesting a potential upside of 3.78%. Given IDT’s stronger consensus rating and higher possible upside, analysts plainly believe IDT is more favorable than Data Storage.
Profitability
This table compares Data Storage and IDT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Data Storage | 1,247.09% | -5.48% | -4.86% |
| IDT | 6.67% | 24.22% | 12.69% |
Institutional & Insider Ownership
11.6% of Data Storage shares are owned by institutional investors. Comparatively, 59.3% of IDT shares are owned by institutional investors. 21.2% of Data Storage shares are owned by company insiders. Comparatively, 25.4% of IDT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
IDT beats Data Storage on 11 of the 14 factors compared between the two stocks.
About Data Storage
Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.
About IDT
IDT Corporation provides communications and payment services in the United States, the United Kingdom, and internationally. It operates through Fintech, National Retail Solutions, net2phone, and Traditional Communications segments. The company operates point of sale, a terminal-based platform which provides independent retailers store management software, electronic payment processing, and other ancillary merchant services; and provides marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services; and Leaf, a digital wallet services which operates money transfer businesses, as well as net2phone, a unified cloud communication services, which includes voice, texting, and chat services to enable smarter business conversations. In addition, the company provides IDT Digital Payments enables businesses, entrepreneurs, and developers to offer prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards, and prepaid utility payments through its Zendit platform; and BOSS Revolution Calling, which provides international long-distance voice services primarily to immigrant communities in the United States and Canada. Further, it offers IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a unique self-serve portal that offers SMBs the power to purchase DIDs, manage IPs, select termination quality, make payments, and other services. The company also provides Awards2Go, a B2B incentive, loyalty, and customer appreciation gift card solution; and IO Security which provides automation to remediation. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.
Receive News & Ratings for Data Storage Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Data Storage and related companies with MarketBeat.com's FREE daily email newsletter.
