Critical Comparison: China Techfaith Wireless Comm. Tech. (CNTF) vs. HMS (HMSY)

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China Techfaith Wireless Comm. Tech. (NASDAQ:CNTF) and HMS (NASDAQ:HMSY) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

0.9% of China Techfaith Wireless Comm. Tech. shares are held by institutional investors. Comparatively, 93.9% of HMS shares are held by institutional investors. 4.5% of HMS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares China Techfaith Wireless Comm. Tech. and HMS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Techfaith Wireless Comm. Tech. $46.81 million 0.28 -$9.33 million N/A N/A
HMS $521.21 million 4.65 $40.05 million $0.43 67.21

HMS has higher revenue and earnings than China Techfaith Wireless Comm. Tech..

Risk & Volatility

China Techfaith Wireless Comm. Tech. has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500. Comparatively, HMS has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for China Techfaith Wireless Comm. Tech. and HMS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Techfaith Wireless Comm. Tech. 0 0 0 0 N/A
HMS 0 3 6 0 2.67

HMS has a consensus price target of $33.11, suggesting a potential upside of 14.57%. Given HMS’s higher probable upside, analysts plainly believe HMS is more favorable than China Techfaith Wireless Comm. Tech..

Profitability

This table compares China Techfaith Wireless Comm. Tech. and HMS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Techfaith Wireless Comm. Tech. N/A N/A N/A
HMS 8.01% 10.63% 6.77%

Summary

HMS beats China Techfaith Wireless Comm. Tech. on 10 of the 11 factors compared between the two stocks.

About China Techfaith Wireless Comm. Tech.

China TechFaith Wireless Communication Technology Limited engages in the original design and development of specialized mobile handsets for consumers and enterprises in the People's Republic of China and internationally. It operates through Mobile Phone Business and Real Estate segments. The company offers handset design services through outsourcing of EMS providers who engage in assembly and manufacturing operations; and offer testing services of the assembled printed circuit boards, systems, and subsystems for Chinese mobile handset brand owners and international mobile handset brand owners. It also provides feature phones, smart phones, ruggedized phones, wireless modules, smart pads, and wireless software and applications, as well as other electronic components, such as industrial wireless devices. In addition, the company sells mobile handset products under the Tecface, 17FOX, and MOBIFOX brands. Further, it owns, develops, operates, and manages commercial real estate properties. The company was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

About HMS

HMS Holdings Corp., through its subsidiaries, provides cost containment solutions in the United States healthcare marketplace. It provides coordination of benefits services to government and commercial healthcare payers and sponsors to coordinate benefits for claims; and payment integrity services that ensure healthcare claims billed are accurate and appropriate, as well as offers care management and consumer engagement solutions. The company's services also enable customers to recover improper payments; prevent future improper payments; reduce fraud, waste, and abuse; improve outcomes and increase retention; and ensure regulatory compliance. It serves state Medicaid programs, commercial health plans, federal government health agencies, government and private employers, children's health insurance programs, and other healthcare payers and sponsors. The company was founded in 1974 and is headquartered in Irving, Texas.

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