China Mobile (Hong Kong) (NYSE: CHL) and BlackBerry Limited (NYSE:BB) are both mid-cap wireless telecommunications services – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Insider and Institutional Ownership

2.0% of China Mobile (Hong Kong) shares are owned by institutional investors. Comparatively, 59.4% of BlackBerry Limited shares are owned by institutional investors. 22.7% of BlackBerry Limited shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

China Mobile (Hong Kong) has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, BlackBerry Limited has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for China Mobile (Hong Kong) and BlackBerry Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile (Hong Kong) 1 0 2 0 2.33
BlackBerry Limited 3 10 4 0 2.06

BlackBerry Limited has a consensus price target of $9.54, indicating a potential downside of 7.34%. Given BlackBerry Limited’s higher possible upside, analysts clearly believe BlackBerry Limited is more favorable than China Mobile (Hong Kong).

Dividends

China Mobile (Hong Kong) pays an annual dividend of $1.65 per share and has a dividend yield of 3.3%. BlackBerry Limited does not pay a dividend. China Mobile (Hong Kong) pays out 40.3% of its earnings in the form of a dividend.

Profitability

This table compares China Mobile (Hong Kong) and BlackBerry Limited’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
BlackBerry Limited 49.62% 2.70% 1.78%

Valuation and Earnings

This table compares China Mobile (Hong Kong) and BlackBerry Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
China Mobile (Hong Kong) $106.68 billion 1.93 $16.37 billion $4.09 12.26
BlackBerry Limited $1.31 billion 4.17 -$1.21 billion $0.96 10.73

China Mobile (Hong Kong) has higher revenue and earnings than BlackBerry Limited. BlackBerry Limited is trading at a lower price-to-earnings ratio than China Mobile (Hong Kong), indicating that it is currently the more affordable of the two stocks.

Summary

BlackBerry Limited beats China Mobile (Hong Kong) on 10 of the 15 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.

BlackBerry Limited Company Profile

BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services. The BlackBerry Technology Solutions business unit consists of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform and Intellectual Property and Patent Licensing (IPPL).

Receive News & Stock Ratings for China Mobile (Hong Kong) Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for China Mobile (Hong Kong) Ltd. and related stocks with our FREE daily email newsletter.