Liberty Sirius XM Group Series A (NASDAQ:LSXMA) and China Telecom (NYSE:CHA) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

Liberty Sirius XM Group Series A has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, China Telecom has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Liberty Sirius XM Group Series A and China Telecom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liberty Sirius XM Group Series A N/A N/A N/A
China Telecom N/A N/A N/A

Earnings and Valuation

This table compares Liberty Sirius XM Group Series A and China Telecom’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Sirius XM Group Series A $5.77 billion 2.23 $650.13 million $2.01 19.76
China Telecom $54.85 billion 0.80 $3.20 billion $3.81 14.28

China Telecom has higher revenue and earnings than Liberty Sirius XM Group Series A. China Telecom is trading at a lower price-to-earnings ratio than Liberty Sirius XM Group Series A, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Liberty Sirius XM Group Series A and China Telecom, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Sirius XM Group Series A 0 1 6 0 2.86
China Telecom 3 2 1 0 1.67

Liberty Sirius XM Group Series A currently has a consensus price target of $60.14, indicating a potential upside of 51.42%. China Telecom has a consensus price target of $53.90, indicating a potential downside of 0.94%. Given Liberty Sirius XM Group Series A’s stronger consensus rating and higher probable upside, equities analysts plainly believe Liberty Sirius XM Group Series A is more favorable than China Telecom.

Institutional & Insider Ownership

27.9% of Liberty Sirius XM Group Series A shares are held by institutional investors. Comparatively, 0.6% of China Telecom shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

China Telecom pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Liberty Sirius XM Group Series A does not pay a dividend. China Telecom pays out 34.6% of its earnings in the form of a dividend. China Telecom has raised its dividend for 2 consecutive years.

Summary

Liberty Sirius XM Group Series A beats China Telecom on 7 of the 12 factors compared between the two stocks.

About Liberty Sirius XM Group Series A

The Liberty SiriusXM Group, through its subsidiary Sirius XM Holdings Inc., transmits music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States and Canada. The company also provides infotainment services; and Sirius XM on Demand over its Internet radio service through applications for mobile and home devices, and other consumer electronic equipment. In addition, it offers connected vehicle services; and Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings. Further, the company engages in the direct sale of satellite radios and accessories. It distributes its satellite radios through automakers, as well as through its retailers and Website; and satellite radio services to satellite radios. As of December 31, 2017, it had approximately 32.7 million subscribers. The company is based in Englewood, Colorado. The Liberty SiriusXM Group is a subsidiary of Liberty Media Corporation.

About China Telecom

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People's Republic of China. It offers wireline voice services, including local wireline telephone services and long distance wireline services; CDMA mobile voice services, such as local calls, domestic and international long distance calls, intra-provincial roaming, and inter-provincial roaming and international roaming; wireline Internet access services comprising dial-up and broadband services; wireless Internet access services; and wireline, Internet, and mobile value-added services. The company also provides Best Tone information services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge, and software development services. In addition, it offers managed data services that include digital data network, frame relay, and asynchronous transfer mode services for government agencies, large corporations, and institutions; and leased line services, as well as sells, repairs, and maintains customer-end equipment. Further, the company provides international telecommunications services, including lease of network equipment, international Internet access and transit, Internet data center, and mobile virtual network services in various countries, including the Asia Pacific, Europe, Africa, South America, and North America; and music production and related information, instant messenger, and e-commerce services, as well as sells telecommunications terminals and calling cards. As of December 31, 2017, it had approximately 122 million access lines in service; 134 million wireline broadband subscribers; and 250 million mobile subscribers. The company was incorporated in 2002 and is based in Beijing, the People's Republic of China. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.

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