China Mobile (NYSE:CHL) and Crexendo (OTCMKTS:CXDO) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.
Earnings and Valuation
This table compares China Mobile and Crexendo’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Mobile||$106.54 billion||1.60||$17.80 billion||$4.16||9.98|
Insider & Institutional Ownership
2.0% of China Mobile shares are owned by institutional investors. 78.0% of Crexendo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for China Mobile and Crexendo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
China Mobile currently has a consensus target price of $50.83, suggesting a potential upside of 22.29%. Given China Mobile’s higher probable upside, equities analysts clearly believe China Mobile is more favorable than Crexendo.
China Mobile pays an annual dividend of $1.75 per share and has a dividend yield of 4.2%. Crexendo does not pay a dividend. China Mobile pays out 42.1% of its earnings in the form of a dividend. China Mobile has increased its dividend for 2 consecutive years.
This table compares China Mobile and Crexendo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
China Mobile has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Crexendo has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500.
Crexendo beats China Mobile on 8 of the 15 factors compared between the two stocks.
About China Mobile
China Mobile Limited provides mobile telecommunications and related services in Mainland China and Hong Kong. The company offers local calls; domestic and international long distance calls and roaming services; and value-added services, such as caller identity display, call waiting, conference calls, and others. It also provides wireless Internet service, as well as digital applications comprising music, video, reading, gaming, and animation; wireline broadband services; and wireline voice services. In addition, it offers dedicated line and IDC services to corporate customers in a range of industry sectors; and basic corporate communication products comprising corporate VPMN and SMS, and tailor made solutions. Further, the company provides international telecommunications services, which includes IDD, roaming, Internet, MNC, and value added business services. Additionally, it offers telecommunications network planning, design, and consulting services; roaming clearance, IT system operation, and technology support services; technology platform development and maintenance services; mobile data, and system integration and development services; network construction and maintenance, network planning and optimizing, and training services; electronic communication products design and sale of related products; non-banking financial services; computer hardware and software research and development services; call center services; e-payment, e-commerce, and Internet finance services; and mobile Internet digital content services, as well as operates a network and business coordination center. The company serves 925 million mobile customers and 157 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.
Crexendo, Inc. provides unified communications cloud telecom, broadband Internet, and other cloud business services for businesses in North America and internationally. The company operates in two segments, Cloud Telecommunications and Web Services. The Cloud Telecommunications segment provides telecommunications services that transmit calls using IP or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services. This segment is also involved in the sale and lease of cloud telecommunications equipment. It offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed Internet connection through various devices and user interfaces, such as desktop phones, and/or mobile and desktop applications. The Web Services segment provides Website hosting and other professional services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was founded in 1995 and is headquartered in Tempe, Arizona.
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