Financial Analysis: China Telecom (CHA) vs. BlackBerry (BB)

China Telecom (NYSE: CHA) and BlackBerry (NYSE:BB) are both mid-cap telecommunications services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional & Insider Ownership

0.4% of China Telecom shares are owned by institutional investors. Comparatively, 58.5% of BlackBerry shares are owned by institutional investors. 22.7% of BlackBerry shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

China Telecom has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, BlackBerry has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for China Telecom and BlackBerry, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom 0 0 1 0 3.00
BlackBerry 3 7 5 0 2.13

BlackBerry has a consensus price target of $10.34, suggesting a potential downside of 23.09%. Given BlackBerry’s higher probable upside, analysts plainly believe BlackBerry is more favorable than China Telecom.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Telecom $53.05 billion 0.73 $2.71 billion $3.60 13.29
BlackBerry $1.31 billion 5.51 -$1.21 billion $0.66 20.38

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

Profitability

This table compares China Telecom and BlackBerry’s 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
BlackBerry 37.36% 3.70% 2.44%

Dividends

China Telecom pays an annual dividend of $1.21 per share and has a dividend yield of 2.5%. BlackBerry does not pay a dividend. China Telecom pays out 33.6% of its earnings in the form of a dividend.

Summary

BlackBerry beats China Telecom on 11 of the 16 factors compared between the two stocks.

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.

About BlackBerry

BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services. The BlackBerry Technology Solutions business unit consists of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform and Intellectual Property and Patent Licensing (IPPL).

Receive News & Ratings for China Telecom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for China Telecom and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply