China Telecom (NYSE: CHA) is one of 33 public companies in the “Wireless Telecommunications Services” industry, but how does it compare to its competitors? We will compare China Telecom to related businesses based on the strength of its analyst recommendations, valuation, dividends, earnings, risk, profitability and institutional ownership.

Risk and Volatility

China Telecom has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, China Telecom’s competitors have a beta of 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares China Telecom and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
China Telecom $53.05 billion $2.71 billion N/A
China Telecom Competitors $27.09 billion $1.51 billion -215.57

China Telecom has higher revenue and earnings than its competitors.

Dividends

China Telecom pays an annual dividend of $1.21 per share and has a dividend yield of 2.5%. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 3.1% and pay out 65.5% of their earnings in the form of a dividend.

Institutional and Insider Ownership

0.4% of China Telecom shares are owned by institutional investors. Comparatively, 40.3% 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares China Telecom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Telecom N/A N/A N/A
China Telecom Competitors -313.90% -3.39% -9.52%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for China Telecom and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom 0 0 1 0 3.00
China Telecom Competitors 526 1697 1873 62 2.35

As a group, “Wireless Telecommunications Services” companies have a potential upside of 31.86%. Given China Telecom’s competitors higher probable upside, analysts clearly believe China Telecom has less favorable growth aspects than its competitors.

Summary

China Telecom beats its competitors on 8 of the 14 factors compared.

About China Telecom

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.

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