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

Insider and Institutional Ownership

2.0% of China Mobile shares are owned by institutional investors. Comparatively, 0.5% of NTT DOCOMO shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares China Mobile and NTT DOCOMO’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Mobile $106.68 billion 1.89 $16.37 billion N/A N/A
NTT DOCOMO $42.41 billion 2.38 $6.07 billion $1.51 16.89

China Mobile has higher revenue and earnings than NTT DOCOMO.

Profitability

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

Net Margins Return on Equity Return on Assets
China Mobile N/A N/A N/A
NTT DOCOMO 13.57% 10.97% 8.30%

Volatility and Risk

China Mobile has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, NTT DOCOMO has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile 1 0 2 0 2.33
NTT DOCOMO 0 4 0 0 2.00

Dividends

China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.4%. NTT DOCOMO pays an annual dividend of $0.75 per share and has a dividend yield of 2.9%. NTT DOCOMO pays out 49.7% of its earnings in the form of a dividend.

Summary

China Mobile beats NTT DOCOMO on 8 of the 12 factors compared between the two stocks.

China Mobile 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.

NTT DOCOMO Company Profile

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.

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