China Mobile (CHL) and ORBCOMM (ORBC) Head to Head Analysis

China Mobile (NYSE: CHL) and ORBCOMM (NASDAQ:ORBC) are both telecommunications services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

2.0% of China Mobile shares are owned by institutional investors. Comparatively, 77.2% of ORBCOMM shares are owned by institutional investors. 9.5% of ORBCOMM shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares China Mobile and ORBCOMM’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Mobile $111.30 billion 1.86 $41.35 billion N/A N/A
ORBCOMM $202.00 million 4.13 $36.94 million ($0.45) -25.20

China Mobile has higher revenue and earnings than ORBCOMM.

Dividends

China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.3%. ORBCOMM does not pay a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for China Mobile and ORBCOMM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Mobile 1 2 2 0 2.20
ORBCOMM 0 0 6 0 3.00

ORBCOMM has a consensus price target of $13.30, suggesting a potential upside of 17.28%. Given ORBCOMM’s stronger consensus rating and higher probable upside, analysts plainly believe ORBCOMM is more favorable than China Mobile.

Profitability

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

Net Margins Return on Equity Return on Assets
China Mobile 16.13% 12.52% 8.08%
ORBCOMM -15.52% -6.16% -3.25%

Volatility & Risk

China Mobile has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, ORBCOMM has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Summary

ORBCOMM beats China Mobile on 7 of the 13 factors compared between the two stocks.

China Mobile Company Profile

China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses, Wireline Broadband businesses and Internet of Things (IoT) businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill enquiry, among others. The Company mainly operates businesses in Mainland China.

ORBCOMM Company Profile

ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.

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