Head to Head Survey: Consolidated Communications (NASDAQ:CNSL) versus China Mobile (NASDAQ:CHL)

Consolidated Communications (NASDAQ:CNSL) and China Mobile (NYSE:CHL) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Consolidated Communications and China Mobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consolidated Communications -1.53% -1.25% -0.13%
China Mobile N/A N/A N/A

Institutional and Insider Ownership

78.3% of Consolidated Communications shares are owned by institutional investors. Comparatively, 2.0% of China Mobile shares are owned by institutional investors. 3.1% of Consolidated Communications shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Consolidated Communications has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, China Mobile has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Valuation & Earnings

This table compares Consolidated Communications and China Mobile’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Consolidated Communications $1.34 billion 0.28 -$20.38 million ($0.05) -105.20
China Mobile $107.93 billion 1.42 $17.80 billion $4.16 9.00

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Consolidated Communications and China Mobile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Communications 1 1 1 0 2.00
China Mobile 0 2 4 0 2.67

Consolidated Communications presently has a consensus price target of $5.75, indicating a potential upside of 9.32%. China Mobile has a consensus price target of $50.83, indicating a potential upside of 35.82%. Given China Mobile’s stronger consensus rating and higher probable upside, analysts plainly believe China Mobile is more favorable than Consolidated Communications.

Summary

China Mobile beats Consolidated Communications on 11 of the 14 factors compared between the two stocks.

About Consolidated Communications

Consolidated Communications Holdings, Inc., through its subsidiaries, provides telecommunications services to business and residential customers in the United States. It offers high-speed broadband Internet access and voice over Internet protocol (VoIP) phone services to small, medium, and large business customers; commercial data connectivity services in select markets, including a portfolio of Ethernet services, software defined wide area network, multi-protocol label switching, and private line services; and wholesale services to regional and national interexchange and wireless carriers, including cellular backhaul, dark fiber, and other fiber transport solutions. The company also provides voice services that include local phone and long-distance service packages for business customers; and sells business equipment and provides related hardware and maintenance support, video, and other miscellaneous services, as well as rents customer premises equipment. In addition, it offers video services, which consist of high-definition television, digital video recorders (DVR), and/or a whole home DVR; other in-demand streaming content; and network access services, including interstate and intrastate switched access, network special access, and end user access. Further, the company engages in telephone directory publishing, video advertising, billing and support services, and other miscellaneous activities. As of December 31, 2018, it had approximately 902 thousand voice connections, 779 thousand data connections, and 93 thousand video connections. The company serves customers in consumer, commercial, and carrier channels. Consolidated Communications Holdings, Inc. was founded in 1894 and is headquartered in Mattoon, Illinois.

About China Mobile

China Mobile Limited provides mobile telecommunications and related services in Mainland China and Hong Kong. The company offers local calls; domestic and international long distance calls and roaming services; and value-added services, such as caller identity display, call waiting, conference calls, and others. It also provides wireless Internet service, as well as digital applications comprising music, video, reading, gaming, and animation; wireline broadband services; and wireline voice services. In addition, it offers dedicated line and IDC services to corporate customers in a range of industry sectors; and basic corporate communication products comprising corporate VPMN and SMS, and tailor made solutions. Further, the company provides international telecommunications services, which includes IDD, roaming, Internet, MNC, and value added business services. Additionally, it offers telecommunications network planning, design, and consulting services; roaming clearance, IT system operation, and technology support services; technology platform development and maintenance services; mobile data, and system integration and development services; network construction and maintenance, network planning and optimizing, and training services; electronic communication products design and sale of related products; non-banking financial services; computer hardware and software research and development services; call center services; e-payment, e-commerce, and Internet finance services; and mobile Internet digital content services, as well as operates a network and business coordination center. The company serves 925 million mobile customers and 157 million wireline broadband customers. The company was formerly known as China Mobile (Hong Kong) Limited and changed its name to China Mobile Limited in May 2006. The company was incorporated in 1997 and is based in Central, Hong Kong. China Mobile Limited is a subsidiary of China Mobile Hong Kong (BVI) Limited.

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