China Unicom (Hong Kong) (NYSE:CHU) and Its Peers Critical Review

China Unicom (Hong Kong) (NYSE: CHU) is one of 35 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its competitors? We will compare China Unicom (Hong Kong) to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Volatility & Risk

China Unicom (Hong Kong) has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, China Unicom (Hong Kong)’s competitors have a beta of 0.85, suggesting that their average share price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares China Unicom (Hong Kong) and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Unicom (Hong Kong) $41.29 billion $90.00 million 70.30
China Unicom (Hong Kong) Competitors $27.09 billion $1.51 billion -180.90

China Unicom (Hong Kong) has higher revenue, but lower earnings than its competitors. China Unicom (Hong Kong) is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

0.9% of China Unicom (Hong Kong) shares are held by institutional investors. Comparatively, 40.1% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 77.5% of China Unicom (Hong Kong) shares are held by insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares China Unicom (Hong Kong) and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Unicom (Hong Kong) N/A N/A N/A
China Unicom (Hong Kong) Competitors -327.68% -3.27% -9.77%

Analyst Recommendations

This is a breakdown of current ratings for China Unicom (Hong Kong) and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Unicom (Hong Kong) 2 2 5 0 2.33
China Unicom (Hong Kong) Competitors 532 1732 1919 65 2.36

As a group, “Wireless Telecommunications Services” companies have a potential upside of 26.22%. Given China Unicom (Hong Kong)’s competitors stronger consensus rating and higher possible upside, analysts clearly believe China Unicom (Hong Kong) has less favorable growth aspects than its competitors.

Summary

China Unicom (Hong Kong) beats its competitors on 7 of the 13 factors compared.

China Unicom (Hong Kong) Company Profile

China Unicom (Hong Kong) Limited is a Hong Kong-based investment holding company principally engaged in the provision of telecommunications services. The Company’s businesses include mobile businesses, fixed-line businesses and others. Its mobile businesses include the provision of call services, roaming services, mobile broadband services, traditional value-added services such as short message services, multimedia message services and wireless Internet access card, as well as new value-added services such as mobile music, mobile television and Wo portal services. Its fixed-line businesses include broadband and Internet networks businesses, among others. The Company’s subsidiaries include CUCL, China Unicom Global Limited and China Unicom (Europe) Operations Limited.

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

Leave a Reply