China Unicom (Hong Kong) (CHU) & MTS (MBT) Financial Review

China Unicom (Hong Kong) (NYSE: CHU) and MTS (NYSE:MBT) are both large-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Risk & Volatility

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China Unicom (Hong Kong) has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, MTS has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

0.9% of China Unicom (Hong Kong) shares are held by institutional investors. Comparatively, 31.4% of MTS shares are held by institutional investors. 77.5% of China Unicom (Hong Kong) shares are held by company insiders. Comparatively, 1.0% of MTS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for China Unicom (Hong Kong) and MTS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Unicom (Hong Kong) 2 2 4 0 2.25
MTS 0 2 4 0 2.67

MTS has a consensus target price of $10.47, suggesting a potential downside of 10.77%. Given MTS’s stronger consensus rating and higher probable upside, analysts plainly believe MTS is more favorable than China Unicom (Hong Kong).

Earnings & Valuation

This table compares China Unicom (Hong Kong) and MTS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Unicom (Hong Kong) $40.68 billion 0.93 $270.55 million N/A N/A
MTS $5.80 billion 2.01 $727.11 million $0.98 11.97

MTS has lower revenue, but higher earnings than China Unicom (Hong Kong).

Dividends

MTS pays an annual dividend of $0.70 per share and has a dividend yield of 6.0%. China Unicom (Hong Kong) does not pay a dividend. MTS pays out 71.4% of its earnings in the form of a dividend.

Profitability

This table compares China Unicom (Hong Kong) and MTS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Unicom (Hong Kong) N/A N/A N/A
MTS 13.61% 43.01% 10.55%

Summary

MTS beats China Unicom (Hong Kong) on 10 of the 13 factors compared between the two stocks.

About China Unicom (Hong Kong)

China Unicom (Hong Kong) Limited is a Hong Kong-based investment holding company principally engaged in the provision of telecommunications services. The Company’s businesses include mobile businesses, fixed-line businesses and others. Its mobile businesses include the provision of call services, roaming services, mobile broadband services, traditional value-added services such as short message services, multimedia message services and wireless Internet access card, as well as new value-added services such as mobile music, mobile television and Wo portal services. Its fixed-line businesses include broadband and Internet networks businesses, among others. The Company’s subsidiaries include CUCL, China Unicom Global Limited and China Unicom (Europe) Operations Limited.

About MTS

Public Joint-Stock Company Mobile TeleSystems provides telecommunication services in Russia, Ukraine, Turkmenistan, and Armenia. The company operates through three segments: Russia Convergent, Moscow Fixed Line, and Ukraine. It offers voice and data transmission, Internet access, pay TV, and various value added services through wireless and fixed lines, as well as sells equipment, accessories, and handsets. The company also provides system integration services and IT solutions. Public Joint-Stock Company Mobile TeleSystems has a partnership agreement with Nokia for joint development and deployment of Nokia's new technological solutions, as well as to promote new digital products and services of Mobile TeleSystems Group. The company was founded in 1993 and is based in Moscow, Russia. Public Joint-Stock Company Mobile TeleSystems is a subsidiary of Sistema Finance S.A.

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