NTT DOCOMO (NYSE: DCM) and China Telecom Corp (NYSE:CHA) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NTT DOCOMO and China Telecom Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NTT DOCOMO 0 3 1 0 2.25
China Telecom Corp 0 0 5 0 3.00

Dividends

NTT DOCOMO pays an annual dividend of $0.68 per share and has a dividend yield of 3.0%. China Telecom Corp pays an annual dividend of $1.21 per share and has a dividend yield of 2.4%. NTT DOCOMO pays out 43.0% of its earnings in the form of a dividend.

Volatility & Risk

NTT DOCOMO has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, China Telecom Corp has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NTT DOCOMO $42.18 billion 2.00 $12.78 billion $1.58 14.44
China Telecom Corp $53.84 billion 0.76 $13.67 billion N/A N/A

China Telecom Corp has higher revenue and earnings than NTT DOCOMO.

Profitability

This table compares NTT DOCOMO and China Telecom Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NTT DOCOMO 13.90% 11.44% 8.65%
China Telecom Corp N/A N/A N/A

Insider and Institutional Ownership

0.5% of NTT DOCOMO shares are owned by institutional investors. Comparatively, 0.4% of China Telecom Corp shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

About NTT DOCOMO

NTT DOCOMO, INC. (DOCOMO) is a mobile telecommunications carrier. The Company operates through three segments: telecommunications business, smart life business and other businesses. The telecommunications business segment includes mobile phone services (long-term evolution (LTE) (Xi) services and freedom of mobile multimedia access (FOMA) services), optical-fiber broadband service, satellite mobile communications services, international services and equipment sales related to these services. The smart life business segment includes video and music distribution, electronic books and other services offered through its dmarket portal, as well as finance/payment services, shopping services and various other services to support the Company’s customers’ daily lives. Its other businesses segment primarily includes Mobile Device Protection Service, as well as the development, sale and maintenance of information technology (IT) systems.

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.

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