Spark New Zealand (OTCMKTS: SPKKY) and China Telecom (NYSE:CHA) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Risk & Volatility
Spark New Zealand has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, China Telecom has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Spark New Zealand pays an annual dividend of $0.64 per share and has a dividend yield of 5.2%. China Telecom pays an annual dividend of $1.21 per share and has a dividend yield of 2.5%. Spark New Zealand pays out 79.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current recommendations for Spark New Zealand and China Telecom, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spark New Zealand||0||0||0||0||N/A|
Valuation and Earnings
This table compares Spark New Zealand and China Telecom’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Spark New Zealand||$2.57 billion||1.74||$297.78 million||$0.81||15.09|
|China Telecom||$54.20 billion||0.72||$2.76 billion||N/A||N/A|
China Telecom has higher revenue and earnings than Spark New Zealand.
Institutional and Insider Ownership
0.2% of Spark New Zealand shares are owned by institutional investors. Comparatively, 0.5% of China Telecom shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Spark New Zealand and China Telecom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spark New Zealand||N/A||N/A||N/A|
China Telecom beats Spark New Zealand on 5 of the 8 factors compared between the two stocks.
Spark New Zealand Company Profile
Spark New Zealand Limited, together with its subsidiaries, provides telecommunications, and information and communications technology (ICT) products and services primarily in New Zealand. The company's Spark Home, Mobile & Business segment offers a range of services and content, data, and voice services across fibre, wireless, copper broadband, mobile, online video entertainment, and nationwide Wi-Fi zones to consumers and small-medium business customers. Its Spark Digital segment integrates information technology (IT) and telecommunications services to provide converged ICT solutions. The company's Spark Connect & Platforms segment is involved in Spark New Zealand's network and IT operations, shared business operations, and digital and service transformation activities. Its Spark Ventures & Wholesale segment develops a portfolio of new businesses; and supervises wholesale products and services. The company also provides IT infrastructure, data center, business cloud, subscription video-on-demand, big data analytics, and outsourced telecommunications services; and retails telecommunications products and services. It has approximately 2.392 million mobile connections. The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. Spark New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.
China Telecom Company Profile
China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People's Republic of China. It offers wireline voice services, including local wireline telephone services and long distance wireline services; CDMA mobile voice services, such as local calls, domestic and international long distance calls, intra-provincial roaming, and inter-provincial roaming and international roaming; wireline Internet access services comprising dial-up and broadband services; wireless Internet access services; and wireline, Internet, and mobile value-added services. The company also provides Best Tone information services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge, and software development services. In addition, it offers managed data services that include digital data network, frame relay, and asynchronous transfer mode services for government agencies, large corporations, and institutions; and leased line services, as well as sells, repairs, and maintains customer-end equipment. Further, the company provides international telecommunications services, including lease of network equipment, international Internet access and transit, Internet data center, and mobile virtual network services in various countries, including the Asia Pacific, Europe, Africa, South America, and North America; and music production and related information, instant messenger, and e-commerce services, as well as sells telecommunications terminals and calling cards. As of December 31, 2017, it had approximately 122 million access lines in service; 134 million wireline broadband subscribers; and 250 million mobile subscribers. The company was incorporated in 2002 and is based in Beijing, the People's Republic of China. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.
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