China Telecom Corp (NYSE: CHA) and Mobile TeleSystems OJSC (NYSE:MBT) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for China Telecom Corp and Mobile TeleSystems OJSC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom Corp 0 0 5 0 3.00
Mobile TeleSystems OJSC 0 2 3 0 2.60

Mobile TeleSystems OJSC has a consensus target price of $10.97, suggesting a potential upside of 5.15%. Given Mobile TeleSystems OJSC’s higher probable upside, analysts clearly believe Mobile TeleSystems OJSC is more favorable than China Telecom Corp.

Valuation & Earnings

This table compares China Telecom Corp and Mobile TeleSystems OJSC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Telecom Corp $55.05 billion 0.75 $14.32 billion N/A N/A
Mobile TeleSystems OJSC $14.03 billion 0.74 $4.86 billion $0.87 11.99

China Telecom Corp has higher revenue and earnings than Mobile TeleSystems OJSC.

Risk and Volatility

China Telecom Corp has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Mobile TeleSystems OJSC has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Dividends

China Telecom Corp pays an annual dividend of $1.21 per share and has a dividend yield of 2.4%. Mobile TeleSystems OJSC pays an annual dividend of $0.72 per share and has a dividend yield of 6.9%. Mobile TeleSystems OJSC pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

0.4% of China Telecom Corp shares are owned by institutional investors. Comparatively, 32.1% of Mobile TeleSystems OJSC shares are owned by institutional investors. 1.0% of Mobile TeleSystems OJSC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares China Telecom Corp and Mobile TeleSystems OJSC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Telecom Corp N/A N/A N/A
Mobile TeleSystems OJSC 12.42% 40.25% 10.03%

Summary

Mobile TeleSystems OJSC beats China Telecom Corp on 8 of the 14 factors compared between the two stocks.

China Telecom Corp Company Profile

China Telecom Corporation Limited is an investment holding company principally engaged in telecommunications and related businesses. The Company provides integrated information services, including wireline and mobile telecommunications services, Internet access services, information services and other value-added telecommunications services. The Company mainly operates its business in domestic market.

Mobile TeleSystems OJSC Company Profile

Mobile TeleSystems Public Joint Stock Company, formerly Mobile TeleSystems Open Joint Stock Company, is a provider of telecommunications services. The Company provides mobile and fixed line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed line segment includes fixed line operations carried out in Moscow by the Company’s subsidiary MGTS. Its Ukraine segment includes mobile and fixed line operations carried out across multiple regions of Ukraine.

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