China Unicom vs China Mobile

China Unicom and China Mobile are two major telecommunications companies in China, both listed on the Hong Kong Stock Exchange. China Unicom, established in 1994, provides a wide range of telecommunications services including mobile, fixed-line, and broadband. China Mobile, founded in 1997, is the largest mobile network operator in China, offering mobile voice and data services to over 900 million subscribers. Investors often compare the performance of these two stocks to assess the health of the Chinese telecommunications sector.

China Unicom or China Mobile?

When comparing China Unicom and China Mobile, 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 Unicom and China Mobile.

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 Unicom has a dividend yield of 11.05%, while China Mobile has a dividend yield of 11.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. China Unicom reports a 5-year dividend growth of 40.01% year and a payout ratio of 0.00%. On the other hand, China Mobile reports a 5-year dividend growth of 6.37% year and a payout ratio of 86.71%.

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 Unicom P/E ratio at 9.49 and China Mobile's P/E ratio at 23.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. China Unicom P/B ratio is 0.53 while China Mobile's P/B ratio is 1.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, China Unicom has seen a 5-year revenue growth of 0.28%, while China Mobile's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with China Unicom's ROE at 5.68% and China Mobile's ROE at 13.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$6.74 for China Unicom and €8.54 for China Mobile. Over the past year, China Unicom's prices ranged from HK$4.45 to HK$7.80, with a yearly change of 75.28%. China Mobile's prices fluctuated between €7.09 and €9.40, with a yearly change of 32.47%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.