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

Dividends

China Telecom Corp pays an annual dividend of $1.21 per share and has a dividend yield of 2.5%. Sprint Corporation does not pay a dividend.

Earnings & Valuation

This table compares China Telecom Corp and Sprint Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Telecom Corp $53.54 billion 0.73 $13.79 billion N/A N/A
Sprint Corporation $33.49 billion 0.96 $10.80 billion ($0.18) -44.89

China Telecom Corp has higher revenue and earnings than Sprint Corporation.

Profitability

This table compares China Telecom Corp and Sprint Corporation’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
Sprint Corporation -2.08% -3.66% -0.84%

Insider & Institutional Ownership

0.4% of China Telecom Corp shares are owned by institutional investors. Comparatively, 14.3% of Sprint Corporation shares are owned by institutional investors. 0.2% of Sprint Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for China Telecom Corp and Sprint Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom Corp 0 0 4 0 3.00
Sprint Corporation 6 10 3 0 1.84

Sprint Corporation has a consensus price target of $9.98, indicating a potential upside of 23.53%. Given Sprint Corporation’s higher probable upside, analysts clearly believe Sprint Corporation is more favorable than China Telecom Corp.

Risk & Volatility

China Telecom Corp has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Sprint Corporation has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Summary

China Telecom Corp beats Sprint Corporation on 8 of the 13 factors compared between the two stocks.

About China Telecom Corp

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.

About Sprint Corporation

Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.

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