Head to Head Analysis: China Mobile (CHL) vs. Cellcom Israel (CEL)

China Mobile (NYSE: CHL) and Cellcom Israel (NYSE:CEL) are both telecommunications services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Dividends

China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.5%. Cellcom Israel does not pay a dividend. China Mobile pays out 38.6% of its earnings in the form of a dividend.

Volatility & Risk

China Mobile has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Cellcom Israel has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500.

Earnings and Valuation

This table compares China Mobile and Cellcom Israel’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Mobile $106.68 billion 1.82 $16.37 billion $4.27 11.11
Cellcom Israel $1.05 billion 0.81 $39.00 million $0.32 26.09

China Mobile has higher revenue and earnings than Cellcom Israel. China Mobile is trading at a lower price-to-earnings ratio than Cellcom Israel, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares China Mobile and Cellcom Israel’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
Cellcom Israel 3.08% 8.63% 1.90%

Analyst Recommendations

This is a summary of recent recommendations for China Mobile and Cellcom Israel, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile 1 0 1 0 2.00
Cellcom Israel 1 0 0 0 1.00

Institutional & Insider Ownership

1.9% of China Mobile shares are held by institutional investors. Comparatively, 7.2% of Cellcom Israel shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About China Mobile

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.

About Cellcom Israel

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

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