China Unicom (Hong Kong) (NYSE: CHU) and China Mobile Limited (NYSE:CHL) are both large-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Dividends

China Mobile Limited pays an annual dividend of $1.65 per share and has a dividend yield of 3.2%. China Unicom (Hong Kong) does not pay a dividend.

Profitability

This table compares China Unicom (Hong Kong) and China Mobile Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Unicom (Hong Kong) N/A N/A N/A
China Mobile Limited N/A N/A N/A

Earnings & Valuation

This table compares China Unicom (Hong Kong) and China Mobile Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
China Unicom (Hong Kong) $41.29 billion 0.88 $90.00 million N/A N/A
China Mobile Limited $106.68 billion 1.98 $16.37 billion N/A N/A

China Mobile Limited has higher revenue and earnings than China Unicom (Hong Kong).

Insider & Institutional Ownership

1.2% of China Unicom (Hong Kong) shares are held by institutional investors. Comparatively, 2.0% of China Mobile Limited shares are held by institutional investors. 77.5% of China Unicom (Hong Kong) shares are held by 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.

Volatility and Risk

China Unicom (Hong Kong) has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, China Mobile Limited has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for China Unicom (Hong Kong) and China Mobile Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Unicom (Hong Kong) 3 2 4 0 2.11
China Mobile Limited 1 1 2 0 2.25

Summary

China Mobile Limited beats China Unicom (Hong Kong) on 6 of the 9 factors compared between the two stocks.

About China Unicom (Hong Kong)

China Unicom (Hong Kong) Limited is a Hong Kong-based investment holding company principally engaged in the provision of telecommunications services. The Company’s businesses include mobile businesses, fixed-line businesses and others. Its mobile businesses include the provision of call services, roaming services, mobile broadband services, traditional value-added services such as short message services, multimedia message services and wireless Internet access card, as well as new value-added services such as mobile music, mobile television and Wo portal services. Its fixed-line businesses include broadband and Internet networks businesses, among others. The Company’s subsidiaries include CUCL, China Unicom Global Limited and China Unicom (Europe) Operations Limited.

About China Mobile Limited

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.

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