Contrasting China Mobile (CHL) and Fusion Telecommunications International (FSNN)

Fusion Telecommunications International (NASDAQ: FSNN) and China Mobile (NYSE:CHL) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitabiliy, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

19.5% of Fusion Telecommunications International shares are held by institutional investors. Comparatively, 2.0% of China Mobile shares are held by institutional investors. 19.1% of Fusion Telecommunications International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Fusion Telecommunications International and China Mobile’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fusion Telecommunications International $124.06 million 0.25 $6.03 million ($0.92) -1.49
China Mobile $104.26 billion 2.12 $38.67 billion N/A N/A

China Mobile has higher revenue and earnings than Fusion Telecommunications International.

Analyst Recommendations

This is a summary of current ratings and target prices for Fusion Telecommunications International and China Mobile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fusion Telecommunications International 0 0 2 0 3.00
China Mobile 0 3 1 0 2.25

Fusion Telecommunications International currently has a consensus target price of $3.00, indicating a potential upside of 118.98%. Given Fusion Telecommunications International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Fusion Telecommunications International is more favorable than China Mobile.

Profitability

This table compares Fusion Telecommunications International and China Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fusion Telecommunications International -10.96% -164.53% -11.83%
China Mobile 14.26% 9.93% 6.39%

Dividends

China Mobile pays an annual dividend of $1.58 per share and has a dividend yield of 2.9%. Fusion Telecommunications International does not pay a dividend.

Risk and Volatility

Fusion Telecommunications International has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500. Comparatively, China Mobile has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.

Summary

China Mobile beats Fusion Telecommunications International on 7 of the 13 factors compared between the two stocks.

About Fusion Telecommunications International

Fusion Telecommunications International, Inc. is a United States-based provider of integrated cloud solutions, including cloud voice, cloud connectivity, cloud infrastructure, cloud computing, and managed cloud-based applications to businesses, and voice over Internet Protocol (VoIP)-based voice services to carriers. The Company operates through two segments: Business Services and Carrier Services. Through Business Services segment, it provides cloud voice, cloud connectivity, cloud infrastructure, cloud computing and managed cloud-based applications to businesses of all sizes. Its suite of business services includes unified communications as a service, session initiation protocol trunking solution and file sharing solution. The Carrier Services segment includes termination of domestic and international carrier traffic utilizing VoIP technology. It offers solutions to small, medium and large businesses. It offers domestic and international VoIP services to carriers around the world.

About China Mobile

China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses and Wireline Broadband 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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