China Unicom (Hong Kong) (NYSE: CHU) and Vodafone Group PLC (NASDAQ:VOD) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Vodafone Group PLC pays an annual dividend of $1.64 per share and has a dividend yield of 5.4%. China Unicom (Hong Kong) does not pay a dividend.
Volatility and Risk
China Unicom (Hong Kong) has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Vodafone Group PLC has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for China Unicom (Hong Kong) and Vodafone Group PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Unicom (Hong Kong)||3||2||4||0||2.11|
|Vodafone Group PLC||1||3||4||1||2.56|
Vodafone Group PLC has a consensus target price of $31.52, indicating a potential upside of 3.41%. Given Vodafone Group PLC’s stronger consensus rating and higher possible upside, analysts clearly believe Vodafone Group PLC is more favorable than China Unicom (Hong Kong).
Valuation & Earnings
This table compares China Unicom (Hong Kong) and Vodafone Group PLC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|China Unicom (Hong Kong)||$41.29 billion||0.88||$90.00 million||N/A||N/A|
|Vodafone Group PLC||$52.29 billion||1.58||-$6.91 billion||N/A||N/A|
China Unicom (Hong Kong) has higher revenue, but lower earnings than Vodafone Group PLC.
This table compares China Unicom (Hong Kong) and Vodafone Group PLC’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|
|Vodafone Group PLC||N/A||N/A||N/A|
Institutional and Insider Ownership
1.2% of China Unicom (Hong Kong) shares are owned by institutional investors. Comparatively, 10.0% of Vodafone Group PLC shares are owned by institutional investors. 77.5% of China Unicom (Hong Kong) shares are owned by company insiders. Comparatively, 1.0% of Vodafone Group PLC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Vodafone Group PLC beats China Unicom (Hong Kong) on 7 of the 10 factors compared between the two stocks.
China Unicom (Hong Kong) Company Profile
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.
Vodafone Group PLC Company Profile
Vodafone Group Plc (Vodafone) is a telecommunications company. The Company’s business is organized into two geographic regions: Europe, and Africa, Middle East and Asia Pacific (AMAP). Its segments include Europe and AMAP. Its Europe segment includes geographic regions, such as Germany, Italy, the United Kingdom, Spain and Other Europe. The Other Europe includes the Netherlands, Portugal, Greece, Hungary and Romania, among others. Its AMAP segment includes India, South Africa, Tanzania, Mozambique, Lesotho, Africa, Turkey, Australia, Egypt, Ghana, Kenya, New Zealand and Qatar, among others. The Company provides a range of services, including voice, messaging and data across mobile and fixed networks. The Company acquires spectrum and licenses to use radio frequencies that deliver mobile services. Its fixed capabilities include cable, fiber and copper networks to enable television, broadband and voice services.
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