China Mobile vs China Unicom Which Is More Profitable?

China Mobile and China Unicom are two of the largest telecommunications companies in China, with a significant presence in the mobile phone market. Both companies have seen fluctuations in their stock prices in recent years, with investors closely monitoring their performances. China Mobile, with its vast subscriber base and advanced network infrastructure, has historically been a more stable investment option. Meanwhile, China Unicom has been focusing on expanding its 5G technology and digital services to attract more customers and improve its stock performance.

China Mobile or China Unicom?

When comparing China Mobile and China Unicom, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between China Mobile and China Unicom.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. China Mobile has a dividend yield of 7.44%, while China Unicom has a dividend yield of 6.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. China Mobile reports a 5-year dividend growth of 6.32% year and a payout ratio of 69.76%. On the other hand, China Unicom reports a 5-year dividend growth of 40.01% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with China Mobile P/E ratio at 10.36 and China Unicom's P/E ratio at 9.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. China Mobile P/B ratio is 1.05 while China Unicom's P/B ratio is 0.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, China Mobile has seen a 5-year revenue growth of 0.31%, while China Unicom's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Mobile's ROE at 10.24% and China Unicom's ROE at 5.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €8.56 for China Mobile and HK$6.80 for China Unicom. Over the past year, China Mobile's prices ranged from €7.09 to €9.40, with a yearly change of 32.47%. China Unicom's prices fluctuated between HK$4.45 and HK$7.80, with a yearly change of 75.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.