Head to Head Comparison: China Mobile (CHL) versus Its Competitors

China Mobile (NYSE: CHL) is one of 34 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its rivals? We will compare China Mobile to related businesses based on the strength of its profitability, risk, analyst recommendations, dividends, institutional ownership, valuation and earnings.

Dividends

China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.4%. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 3.1% and pay out 70.6% of their earnings in the form of a dividend.

Profitability

This table compares China Mobile and its rivals’ 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
China Mobile Competitors -313.97% -3.42% -9.55%

Insider and Institutional Ownership

2.0% of China Mobile shares are held by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

China Mobile has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, China Mobile’s rivals have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.

Earnings & Valuation

This table compares China Mobile and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Mobile $106.68 billion $16.37 billion N/A
China Mobile Competitors $27.09 billion $1.51 billion -215.16

China Mobile has higher revenue and earnings than its rivals.

Analyst Recommendations

This is a breakdown of current ratings and price targets for China Mobile and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile 1 0 2 0 2.33
China Mobile Competitors 524 1704 1881 64 2.36

As a group, “Wireless Telecommunications Services” companies have a potential upside of 29.98%. Given China Mobile’s rivals stronger consensus rating and higher probable upside, analysts clearly believe China Mobile has less favorable growth aspects than its rivals.

Summary

China Mobile beats its rivals on 8 of the 14 factors compared.

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.

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