Analyzing China Telecom (CHA) and Its Peers

China Telecom (NYSE: CHA) is one of 34 public companies in the “Wireless Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare China Telecom to similar companies based on the strength of its profitability, risk, institutional ownership, earnings, dividends, valuation and analyst recommendations.

Insider & Institutional Ownership

0.4% of China Telecom shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for China Telecom and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom 0 0 1 0 3.00
China Telecom Competitors 529 1705 1875 62 2.35

As a group, “Wireless Telecommunications Services” companies have a potential upside of 31.12%. Given China Telecom’s peers higher probable upside, analysts plainly believe China Telecom has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares China Telecom and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Telecom $53.05 billion $2.71 billion N/A
China Telecom Competitors $27.09 billion $1.51 billion -192.67

China Telecom has higher revenue and earnings than its peers.

Volatility & Risk

China Telecom has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, China Telecom’s peers have a beta of 0.85, meaning that their average share price is 15% less volatile than the S&P 500.

Profitability

This table compares China Telecom and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Telecom N/A N/A N/A
China Telecom Competitors -302.90% -4.40% -9.74%

Dividends

China Telecom pays an annual dividend of $1.21 per share and has a dividend yield of 2.5%. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 3.1% and pay out 71.9% of their earnings in the form of a dividend.

Summary

China Telecom beats its peers on 8 of the 14 factors compared.

About China Telecom

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.

Receive News & Ratings for China Telecom Corp Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for China Telecom Corp Ltd and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply