Head-To-Head Contrast: T-Mobile Us (NYSE:PCS) vs. China Mobile (CHL)

China Mobile (NYSE: CHL) and T-Mobile Us (NYSE:PCS) are both mid-cap telecommunications services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for China Mobile and T-Mobile Us, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile 1 0 2 0 2.33
T-Mobile Us 0 1 6 0 2.86

T-Mobile Us has a consensus price target of $71.29, suggesting a potential upside of 502.08%. Given T-Mobile Us’ stronger consensus rating and higher possible upside, analysts plainly believe T-Mobile Us is more favorable than China Mobile.

Dividends

China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.3%. T-Mobile Us does not pay a dividend. China Mobile pays out 39.4% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares China Mobile and T-Mobile Us’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Mobile $106.68 billion 1.91 $16.37 billion $4.19 11.90
T-Mobile Us N/A N/A N/A $0.24 49.33

China Mobile has higher revenue and earnings than T-Mobile Us. China Mobile is trading at a lower price-to-earnings ratio than T-Mobile Us, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.0% of China Mobile shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares China Mobile and T-Mobile Us’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Mobile 16.13% 12.52% 8.08%
T-Mobile Us N/A N/A N/A

Summary

China Mobile beats T-Mobile Us on 7 of the 12 factors compared between the two stocks.

China Mobile Company Profile

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.

T-Mobile Us Company Profile

MetroPCS Communications, Inc. (MetroPCS Communications) is a facilities-based wireless broadband mobile communications provider in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota metropolitan areas. It offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas in the United States. It provides a variety of wireless broadband mobile communications services to its customers on a no long-term contract, paid-in-advance basis. As of December 31, 2011, it had over 9.3 million customers. All of its services are provided through wholly owned subsidiaries of MetroPCS Wireless, Inc., an indirect wholly owned subsidiary of MetroPCS Communications. In January 2011, it introduced long term evolution (4G LTE) service plans.

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