Critical Review: China Mobile (Hong Kong) (CHL) and ORBCOMM (ORBC)
China Mobile (Hong Kong) (NYSE: CHL) and ORBCOMM (NASDAQ:ORBC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Valuation & Earnings
This table compares China Mobile (Hong Kong) and ORBCOMM’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Mobile (Hong Kong)||$111.30 billion||1.86||$41.35 billion||N/A||N/A|
|ORBCOMM||$202.00 million||4.24||$36.94 million||($0.45)||-25.91|
China Mobile (Hong Kong) has higher revenue and earnings than ORBCOMM.
Insider and Institutional Ownership
2.0% of China Mobile (Hong Kong) shares are held by institutional investors. Comparatively, 77.2% of ORBCOMM shares are held by institutional investors. 9.5% of ORBCOMM shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings for China Mobile (Hong Kong) and ORBCOMM, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Mobile (Hong Kong)||1||2||2||0||2.20|
ORBCOMM has a consensus target price of $13.30, indicating a potential upside of 14.07%. Given ORBCOMM’s stronger consensus rating and higher probable upside, analysts plainly believe ORBCOMM is more favorable than China Mobile (Hong Kong).
Volatility & Risk
China Mobile (Hong Kong) has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, ORBCOMM has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
This table compares China Mobile (Hong Kong) and ORBCOMM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Mobile (Hong Kong)||N/A||N/A||N/A|
China Mobile (Hong Kong) pays an annual dividend of $1.65 per share and has a dividend yield of 3.3%. ORBCOMM does not pay a dividend.
ORBCOMM beats China Mobile (Hong Kong) on 7 of the 13 factors compared between the two stocks.
China Mobile (Hong Kong) Company Profile
China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses, Wireline Broadband businesses and Internet of Things (IoT) businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill enquiry, among others. The Company mainly operates businesses in Mainland China.
ORBCOMM Company Profile
ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.
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