SmarTone Telecommunications vs China Mobile Which Is More Profitable?

SmarTone Telecommunications and China Mobile are two prominent players in the telecommunications industry. Both companies have consistently delivered strong financial performance and have established a solid reputation in the market. While SmarTone Telecommunications focuses on providing innovative mobile services in Hong Kong, China Mobile is a leading telecommunications carrier in Mainland China. Investors looking to capitalize on the growth potential of the telecommunications sector may find opportunities in both stocks.

SmarTone Telecommunications or China Mobile?

When comparing SmarTone Telecommunications 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 SmarTone Telecommunications 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. SmarTone Telecommunications has a dividend yield of 7.75%, while China Mobile has a dividend yield of 7.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SmarTone Telecommunications reports a 5-year dividend growth of -4.84% year and a payout ratio of 75.11%. On the other hand, China Mobile reports a 5-year dividend growth of 6.32% year and a payout ratio of 69.76%.

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 SmarTone Telecommunications P/E ratio at 9.85 and China Mobile's P/E ratio at 10.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SmarTone Telecommunications P/B ratio is 0.89 while China Mobile's P/B ratio is 1.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SmarTone Telecommunications has seen a 5-year revenue growth of -0.25%, while China Mobile's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SmarTone Telecommunications's ROE at 9.12% and China Mobile's ROE at 10.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$4.13 for SmarTone Telecommunications and €8.56 for China Mobile. Over the past year, SmarTone Telecommunications's prices ranged from HK$3.58 to HK$4.36, with a yearly change of 21.79%. 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.