MTS (NYSE: MBT) and China Mobile (NYSE:CHL) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.
MTS pays an annual dividend of $0.70 per share and has a dividend yield of 6.0%. China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.6%. MTS pays out 71.4% of its earnings in the form of a dividend.
This table compares MTS and China Mobile’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MTS||$5.80 billion||2.01||$727.11 million||$0.98||11.97|
|China Mobile||$106.68 billion||1.77||$16.37 billion||N/A||N/A|
China Mobile has higher revenue and earnings than MTS.
This is a summary of recent recommendations for MTS and China Mobile, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MTS presently has a consensus price target of $10.47, indicating a potential downside of 10.77%. Given MTS’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MTS is more favorable than China Mobile.
This table compares MTS and China Mobile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
31.4% of MTS shares are held by institutional investors. Comparatively, 1.9% of China Mobile shares are held by institutional investors. 1.0% of MTS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
MTS has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, China Mobile has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
MTS beats China Mobile on 11 of the 14 factors compared between the two stocks.
MTS Company Profile
Public Joint-Stock Company Mobile TeleSystems provides telecommunication services in Russia, Ukraine, Turkmenistan, and Armenia. The company operates through three segments: Russia Convergent, Moscow Fixed Line, and Ukraine. It offers voice and data transmission, Internet access, pay TV, and various value added services through wireless and fixed lines, as well as sells equipment, accessories, and handsets. The company also provides system integration services and IT solutions. Public Joint-Stock Company Mobile TeleSystems has a partnership agreement with Nokia for joint development and deployment of Nokia's new technological solutions, as well as to promote new digital products and services of Mobile TeleSystems Group. The company was founded in 1993 and is based in Moscow, Russia. Public Joint-Stock Company Mobile TeleSystems is a subsidiary of Sistema Finance S.A.
China Mobile Company Profile
China Mobile Limited, an investment holding company, provides mobile telecommunications and related services in Mainland China and Hong Kong. It offers voice services, including local calls; domestic and international long distance calls and roaming services; and voice value-added services, such as caller identity display, call waiting, conference calls, and others. The company also provides wireless Internet service, as well as digital applications, including music, video, reading, gaming, and animation; and wireline broadband services. In addition, it offers dedicated line services to corporate customers in a range of industry sectors; and basic corporate communication products, such as corporate VPMN and SMS, as well as tailor made solutions. Further, the company provides international telecommunications services, which includes IDD, roaming, Internet, MNC services, and value added business. Additionally, it offers telecommunications network planning design and consulting services; roaming clearance services; technology platform development and maintenance services; and system integration and development solutions, as well as operates a network and business coordination center. The company is involved in network construction and maintenance, as well as network planning and optimizing, and training services; and provision of electronic communication products design and sale of related products, non-banking financial services, computer hardware and software research and development services, call center services, and mobile Internet digital content services. As of 31 December 2016, it served 849 million mobile customers and 77.62 million wireline broadband customers. The company was formerly known as China Mobile (Hong Kong) Limited and changed its name to China Mobile Limited in May 2006. The company was incorporated in 1997 and is based in Central, Hong Kong. China Mobile Limited is a subsidiary of China Mobile Hong Kong (BVI) Limited.
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