China Telecom Corp (NYSE: CHA) and pdvWireless (NASDAQ:PDVW) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Dividends

China Telecom Corp pays an annual dividend of $1.21 per share and has a dividend yield of 2.3%. pdvWireless does not pay a dividend.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Telecom Corp $55.05 billion 0.76 $14.32 billion N/A N/A
pdvWireless $5.21 million 87.03 -$27.65 million ($2.57) -12.24

China Telecom Corp has higher revenue and earnings than pdvWireless.

Profitability

This table compares China Telecom Corp and pdvWireless’ 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
pdvWireless -711.56% -15.52% -14.61%

Analyst Ratings

This is a breakdown of recent ratings and price targets for China Telecom Corp and pdvWireless, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom Corp 0 0 5 0 3.00
pdvWireless 0 0 2 0 3.00

pdvWireless has a consensus target price of $51.00, indicating a potential upside of 62.16%. Given pdvWireless’ higher probable upside, analysts clearly believe pdvWireless is more favorable than China Telecom Corp.

Insider and Institutional Ownership

0.4% of China Telecom Corp shares are held by institutional investors. Comparatively, 93.0% of pdvWireless shares are held by institutional investors. 10.9% of pdvWireless shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

China Telecom Corp has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, pdvWireless has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Summary

China Telecom Corp beats pdvWireless on 8 of the 12 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 pdvWireless

pdvWireless, Inc., formerly Pacific DataVision, Inc., is a wireless communications carrier and a provider of mobile workforce communication and location-based solutions. The Company’s solutions focus on enhancing the productivity of its customers’ field-based workers, and the efficiency of their dispatch and call center operations. The Company is deploying and operating the two-way radio networks that offer push-to-talk (PTT) communications services to primarily dispatch-centric, small and medium-sized businesses. The Company has launched its PTT networks in markets throughout the United States. The Company offers its DispatchPlus service, which combines pdvConnect, its suite of mobile communication and workforce management applications with digital network architecture and mobile devices. Developed for dispatch-centric businesses, pdvConnect enables businesses to locate and communicate with their field workers.

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