T-Mobile US (NASDAQ: TMUS) and China Unicom (Hong Kong) (NYSE:CHU) are both large-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional & Insider Ownership
34.0% of T-Mobile US shares are owned by institutional investors. Comparatively, 1.0% of China Unicom (Hong Kong) shares are owned by institutional investors. 0.4% of T-Mobile US shares are owned by company insiders. Comparatively, 77.5% of China Unicom (Hong Kong) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and target prices for T-Mobile US and China Unicom (Hong Kong), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Unicom (Hong Kong)||1||2||3||0||2.33|
T-Mobile US currently has a consensus target price of $71.99, suggesting a potential upside of 27.21%. Given T-Mobile US’s stronger consensus rating and higher possible upside, equities analysts plainly believe T-Mobile US is more favorable than China Unicom (Hong Kong).
China Unicom (Hong Kong) pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. T-Mobile US does not pay a dividend. China Unicom (Hong Kong) pays out 63.6% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares T-Mobile US and China Unicom (Hong Kong)’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|T-Mobile US||$40.60 billion||1.18||$4.54 billion||$2.29||24.71|
|China Unicom (Hong Kong)||$40.68 billion||1.06||$281.00 million||$0.11||128.64|
T-Mobile US has higher earnings, but lower revenue than China Unicom (Hong Kong). T-Mobile US is trading at a lower price-to-earnings ratio than China Unicom (Hong Kong), indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
T-Mobile US has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, China Unicom (Hong Kong) has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
This table compares T-Mobile US and China Unicom (Hong Kong)’s 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|
T-Mobile US beats China Unicom (Hong Kong) on 12 of the 16 factors compared between the two stocks.
T-Mobile US Company Profile
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 72.6 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices, as well as accessories that are manufactured by various suppliers. In addition, the company offers services, devices, and accessories under the T-Mobile and MetroPCS brands through its owned and operated retail stores, third party distributors, and its Websites. It also sells its devices to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. As of December 31, 2017, T-Mobile US, Inc. operated approximately 2,200 T-Mobile and MetroPCS retail locations, including stores and kiosks. The company was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. is a subsidiary of Deutsche Telekom AG.
China Unicom (Hong Kong) Company Profile
China Unicom (Hong Kong) Limited, an integrated telecommunications operator, provides telecommunications services and telecommunications products worldwide. It offers mobile voice services that enable its subscribers to make and receive phone calls comprising local calls, domestic and international long-distance calls, intra-provincial roaming, inter-provincial roaming, and international roaming; and mobile data, mobile reading, mobile music, WO app store, SMS, personalized ring-back tone, and other wireless information services. The company also provides fixed-line broadband access, data communications, fixed-line voice, fixed-line voice value-added, and fixed-line other services. In addition, it offers bundled services that integrate mobiles and fixed-line services in a service package; and Internet data center, cloud computing, big data, Internet-of-things, information technology, and other services. Additionally, it provides telecommunications network construction, planning, and technical consulting services; consultancy, survey, design, and contract services for information and construction projects in the telecommunications industry; Internet information, e-payment, telecommunications networks leasing, magazine publishing, project consultation and management, and property management services; advertising design, production, agency, and publication services; and technology development, transfer, and consulting services. The company also offers customer, data processing, and tourism and information services, as well as engages in the financial services, auto informatization, and venture capital investment businesses; and sells mobile handsets, fixed-line terminals, and accessories. As of December 31, 2017, it had 284.16 million mobile billing subscribers and 76,539,000 fixed-line broadband subscribers. The company was incorporated in 2000 and is based in Central, Hong Kong. China Unicom (Hong Kong) Limited is a subsidiary of China Unicom (BVI) Limited.
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