China Mobile (CHL) versus Its Competitors Head to Head Analysis

China Mobile (NYSE: CHL) is one of 34 public companies in the “Wireless Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare China Mobile to similar businesses based on the strength of its risk, analyst recommendations, valuation, dividends, institutional ownership, earnings and profitability.

Earnings & Valuation

This table compares China Mobile and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Mobile $106.68 billion $16.37 billion 11.99
China Mobile Competitors $27.09 billion $1.51 billion 51.41

China Mobile has higher revenue and earnings than its peers. China Mobile is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

China Mobile has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, China Mobile’s peers have a beta of 0.85, suggesting that their average share price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for China Mobile and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile 1 0 2 0 2.33
China Mobile Competitors 449 1491 1362 56 2.31

As a group, “Wireless Telecommunications Services” companies have a potential upside of 38.81%. Given China Mobile’s peers higher probable upside, analysts plainly believe China Mobile has less favorable growth aspects than its peers.

Dividends

China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.3%. China Mobile pays out 39.7% of its earnings in the form of a dividend. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 2.9% and pay out 57.2% of their earnings in the form of a dividend. China Mobile is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

2.0% of China Mobile shares are owned by institutional investors. Comparatively, 40.1% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 12.5% of shares of all “Wireless Telecommunications Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares China Mobile and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Mobile N/A N/A N/A
China Mobile Competitors -341.62% -3.58% -10.27%

Summary

China Mobile beats its peers on 9 of the 15 factors compared.

About China Mobile

China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses, Wireline Broadband businesses and Internet of Things (IoT) businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill enquiry, among others. The Company mainly operates businesses in Mainland China.

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