CHL vs RM Which Is More Attractive?

CHL (China Mobile Limited) and RM (RingCentral Inc.) are two prominent stocks in the telecommunications sector. While CHL is a Chinese state-owned telecommunications company, RM is a leading provider of cloud-based communication and collaboration solutions. Investors often compare the two stocks due to their different business models and geographical focuses. CHL's stability and strong market positioning in China may attract more conservative investors, while RM's innovative technology and potential for growth may appeal to those seeking higher returns.

CHL or RM?

When comparing CHL and RM, 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 CHL and RM.

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. CHL has a dividend yield of -%, while RM has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CHL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, RM reports a 5-year dividend growth of 0.00% 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 CHL P/E ratio at 28.02 and RM's P/E ratio at -1.41. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CHL P/B ratio is -1.79 while RM's P/B ratio is 5.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CHL has seen a 5-year revenue growth of 0.37%, while RM's is -0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CHL's ROE at -14.61% and RM's ROE at -311.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹37.60 for CHL and £75.50 for RM. Over the past year, CHL's prices ranged from ₹4.75 to ₹39.00, with a yearly change of 721.05%. RM's prices fluctuated between £45.61 and £106.00, with a yearly change of 132.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.