China Telecom Corp (NYSE: CHA) and China Unicom (Hong Kong) (NYSE:CHU) are both large-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Dividends

China Telecom Corp pays an annual dividend of $1.21 per share and has a dividend yield of 2.4%. China Unicom (Hong Kong) does not pay a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for China Telecom Corp and China Unicom (Hong Kong), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom Corp 0 0 5 0 3.00
China Unicom (Hong Kong) 4 1 4 0 2.00

Profitability

This table compares China Telecom Corp and China Unicom (Hong Kong)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Telecom Corp N/A N/A N/A
China Unicom (Hong Kong) N/A N/A N/A

Earnings & Valuation

This table compares China Telecom Corp and China Unicom (Hong Kong)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Telecom Corp $54.42 billion 0.74 $14.15 billion N/A N/A
China Unicom (Hong Kong) $41.18 billion 0.84 $11.88 billion N/A N/A

China Telecom Corp has higher revenue and earnings than China Unicom (Hong Kong).

Volatility & Risk

China Telecom Corp has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, China Unicom (Hong Kong) has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Insider & Institutional Ownership

0.4% of China Telecom Corp shares are owned by institutional investors. Comparatively, 1.2% of China Unicom (Hong Kong) shares are owned by institutional investors. 77.5% of China Unicom (Hong Kong) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

China Telecom Corp beats China Unicom (Hong Kong) on 5 of the 9 factors compared between the two stocks.

About China Telecom Corp

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.

About China Unicom (Hong Kong)

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.

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