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

Earnings & Valuation

This table compares AT&T and China Mobile (Hong Kong)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AT&T $161.93 billion 1.46 $49.37 billion $2.12 18.16
China Mobile (Hong Kong) $111.30 billion 1.87 $41.35 billion N/A N/A

AT&T has higher revenue and earnings than China Mobile (Hong Kong).

Institutional & Insider Ownership

55.0% of AT&T shares are held by institutional investors. Comparatively, 2.0% of China Mobile (Hong Kong) shares are held by institutional investors. 0.1% of AT&T shares are held 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for AT&T and China Mobile (Hong Kong), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AT&T 0 16 10 0 2.38
China Mobile (Hong Kong) 1 2 2 0 2.20

AT&T presently has a consensus price target of $44.10, suggesting a potential upside of 14.55%. Given AT&T’s stronger consensus rating and higher possible upside, equities analysts plainly believe AT&T is more favorable than China Mobile (Hong Kong).

Dividends

AT&T pays an annual dividend of $1.96 per share and has a dividend yield of 5.1%. China Mobile (Hong Kong) pays an annual dividend of $1.65 per share and has a dividend yield of 3.2%. AT&T pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Mobile (Hong Kong) has increased its dividend for 32 consecutive years.

Profitability

This table compares AT&T and China Mobile (Hong Kong)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AT&T 8.12% 14.53% 4.43%
China Mobile (Hong Kong) N/A N/A N/A

Volatility and Risk

AT&T has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, China Mobile (Hong Kong) has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Summary

AT&T beats China Mobile (Hong Kong) on 13 of the 16 factors compared between the two stocks.

About AT&T

AT&T Inc. is a holding company. The Company is a provider of communications and digital entertainment services in the United States and the world. The Company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility and International. The Company offers its services and products to consumers in the United States, Mexico and Latin America and to businesses and other providers of telecommunications services worldwide. It also owns and operates three regional TV sports networks, and retains non-controlling interests in another regional sports network and a network dedicated to game-related programming, as well as Internet interactive game playing. Its services and products include wireless communications, data/broadband and Internet services, digital video services, local and long-distance telephone services, telecommunications equipment, managed networking, and wholesale services. Its subsidiaries include AT&T Mobility and SKY Brasil Servicos Ltda.

About China Mobile (Hong Kong)

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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