TalkTalk Telecom Group (NYSE: CHA) 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 earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Institutional and Insider Ownership

0.6% of China Telecom shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares TalkTalk Telecom Group and China Telecom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TalkTalk Telecom Group N/A N/A N/A
China Telecom N/A N/A N/A

Earnings and Valuation

This table compares TalkTalk Telecom Group and China Telecom’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TalkTalk Telecom Group $2.33 billion 1.02 $75.82 million N/A N/A
China Telecom $54.20 billion 0.72 $2.76 billion $3.40 14.28

China Telecom has higher revenue and earnings than TalkTalk Telecom Group.

Analyst Recommendations

This is a summary of current recommendations for TalkTalk Telecom Group and China Telecom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TalkTalk Telecom Group 1 1 1 0 2.00
China Telecom 0 2 2 0 2.50

Volatility and Risk

TalkTalk Telecom Group has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, China Telecom has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Dividends

TalkTalk Telecom Group pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. China Telecom pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. China Telecom pays out 38.8% of its earnings in the form of a dividend.

Summary

China Telecom beats TalkTalk Telecom Group on 7 of the 9 factors compared between the two stocks.

About TalkTalk Telecom Group

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.

About China Telecom

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.

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