China Telecom Corp (NYSE: CHA) and PLDT (NYSE:PHI) are both mid-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitabiliy, earnings, institutional ownership, risk, analyst recommendations and valuation.
Institutional & Insider Ownership
0.4% of China Telecom Corp shares are held by institutional investors. Comparatively, 10.2% of PLDT shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares China Telecom Corp and PLDT’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Telecom Corp||$52.11 billion||0.76||$13.42 billion||N/A||N/A|
|PLDT||$3.24 billion||2.50||$1.23 billion||$1.81||20.75|
China Telecom Corp has higher revenue and earnings than PLDT.
This is a breakdown of recent recommendations and price targets for China Telecom Corp and PLDT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Telecom Corp||0||0||4||1||3.20|
Volatility & Risk
China Telecom Corp has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, PLDT has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
This table compares China Telecom Corp and PLDT’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 Telecom Corp pays an annual dividend of $1.22 per share and has a dividend yield of 2.5%. PLDT pays an annual dividend of $1.60 per share and has a dividend yield of 4.3%. PLDT pays out 88.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
PLDT beats China Telecom Corp on 7 of the 13 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 operates through seven businesses. Wireline Voice Services include local and long distance wireline services. Mobile Voice Services include local calls, domestic and international long distance calls and roaming services. Internet Access Services include dial-up and broadband services and wireless Internet access services. Value-added Services include wireline, Internet and mobile value-added services, such as short message services, telephone payment services and Internet applications, among others. Integrated Information Application Services include Best Tone services, information technology (IT) services and IT application services. Managed Data and Leased Line Services include frame relay (FR) and Asynchronous Transfer Mode (ATM) services, among others. Other Services include the sales, repair and maintenance of customer-end equipment.
PLDT, Inc., formerly Philippine Long Distance Telephone Company (PLDT), is a telecommunications service provider in the Philippines. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines’ fiber optic backbone and wireless and fixed line networks. The Company’s wireless segment provides cellular, wireless broadband and other services, and digital platforms and mobile financial services. Its Fixed Line segment provides local exchange, international long distance, national long distance, data and other network and miscellaneous services under its fixed line business. It offers postpaid and prepaid fixed line services. Its Other business consists of PLDT Communications and Energy Ventures, Inc. (PCEV), an investment holding company. It also focuses on providing wireless voice communications and wireless data communications.
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