TIM Participacoes (NYSE: TSU) and China Unicom (Hong Kong) (NYSE:CHU) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Dividends
TIM Participacoes pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. China Unicom (Hong Kong) does not pay a dividend. TIM Participacoes pays out 12.3% of its earnings in the form of a dividend. TIM Participacoes has increased its dividend for 4 consecutive years.
Profitability
This table compares TIM Participacoes and China Unicom (Hong Kong)’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TIM Participacoes | 5.07% | 5.21% | 2.71% |
| China Unicom (Hong Kong) | N/A | N/A | N/A |
Insider & Institutional Ownership
19.6% of TIM Participacoes 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
TIM Participacoes has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, China Unicom (Hong Kong) has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for TIM Participacoes and China Unicom (Hong Kong), as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TIM Participacoes | 1 | 1 | 5 | 0 | 2.57 |
| China Unicom (Hong Kong) | 2 | 1 | 5 | 0 | 2.38 |
TIM Participacoes presently has a consensus price target of $18.63, suggesting a potential upside of 3.24%. China Unicom (Hong Kong) has a consensus price target of $12.50, suggesting a potential downside of 20.23%. Given TIM Participacoes’ stronger consensus rating and higher possible upside, research analysts clearly believe TIM Participacoes is more favorable than China Unicom (Hong Kong).
Valuation and Earnings
This table compares TIM Participacoes and China Unicom (Hong Kong)’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| TIM Participacoes | $5.06 billion | 1.73 | $1.20 billion | $0.57 | 31.65 |
| China Unicom (Hong Kong) | $40.63 billion | 0.92 | $11.45 billion | N/A | N/A |
China Unicom (Hong Kong) has higher revenue and earnings than TIM Participacoes.
Summary
TIM Participacoes beats China Unicom (Hong Kong) on 10 of the 14 factors compared between the two stocks.
TIM Participacoes Company Profile
TIM Participacoes S.A. (TIM) is a provider of mobile telecommunication services in Brazil. The Company, through its subsidiaries in various telecommunications markets, operates mobile, fixed and long distance telephony, data transmission and ultra-broadband services. Its direct subsidiaries include TIM Celular S.A., which provides landline telephone services (commuted fixed telephonic service (STFC))-domestic long distance and international long distance voice services, personal mobile service (SMP) and multimedia communication service (multimedia service of communication (SCM)) in all Brazilian states and in the Federal District, and Intelig Telecomunicacoes Ltda., which provides STFC-local voices services and SCM services in all Brazilian states and in the Federal District. Its consumer plans include prepaid plans, post-paid plans and controle plans. It offers value-added services, including short message services or text messaging, multimedia messaging services and push-mail.
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 TIM Participacoes S.A. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TIM Participacoes S.A. and related companies with MarketBeat.com's FREE daily email newsletter.
