Contrasting Cellcom Israel (CEL) & China Telecom Corp (CHA)

Cellcom Israel (NYSE: CEL) and China Telecom Corp (NYSE:CHA) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Cellcom Israel and China Telecom Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cellcom Israel $1.11 billion 0.84 $210.25 million $0.32 28.97
China Telecom Corp $55.05 billion 0.75 $14.32 billion N/A N/A

China Telecom Corp has higher revenue and earnings than Cellcom Israel.

Profitability

This table compares Cellcom Israel and China Telecom Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cellcom Israel 3.12% 8.94% 1.90%
China Telecom Corp N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cellcom Israel and China Telecom Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 1 1 0 0 1.50
China Telecom Corp 0 0 5 0 3.00

Insider and Institutional Ownership

5.6% of Cellcom Israel shares are owned by institutional investors. Comparatively, 0.4% of China Telecom Corp shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

China Telecom Corp pays an annual dividend of $1.21 per share and has a dividend yield of 2.4%. Cellcom Israel does not pay a dividend.

Risk and Volatility

Cellcom Israel has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, China Telecom Corp has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Summary

Cellcom Israel beats China Telecom Corp on 7 of the 12 factors compared between the two stocks.

About Cellcom Israel

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

About China Telecom Corp

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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