Critical Contrast: AT&T (T) & China Mobile (Hong Kong) (CHL)
AT&T (NYSE: T) and China Mobile (Hong Kong) (NYSE:CHL) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
AT&T pays an annual dividend of $1.96 per share and has a dividend yield of 5.8%. China Mobile (Hong Kong) pays an annual dividend of $1.65 per share and has a dividend yield of 3.3%. AT&T pays out 94.7% 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.
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|
|China Mobile (Hong Kong)||N/A||N/A||N/A|
Risk & Volatility
AT&T has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, China Mobile (Hong Kong) has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.
Institutional and Insider Ownership
55.0% of AT&T shares are owned by institutional investors. Comparatively, 2.0% of China Mobile (Hong Kong) shares are owned by institutional investors. 0.1% of AT&T shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares AT&T and China Mobile (Hong Kong)’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AT&T||$161.93 billion||1.29||$49.37 billion||$2.07||16.41|
|China Mobile (Hong Kong)||$111.30 billion||1.86||$41.35 billion||N/A||N/A|
AT&T has higher revenue and earnings than China Mobile (Hong Kong).
This is a summary of recent ratings for AT&T and China Mobile (Hong Kong), as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Mobile (Hong Kong)||1||1||2||0||2.25|
AT&T currently has a consensus price target of $43.00, indicating a potential upside of 26.58%. Given AT&T’s stronger consensus rating and higher possible upside, research analysts plainly believe AT&T is more favorable than China Mobile (Hong Kong).
AT&T beats China Mobile (Hong Kong) on 13 of the 16 factors compared between the two stocks.
AT&T Company Profile
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.
China Mobile (Hong Kong) Company Profile
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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