China Unicom (Hong Kong) (CHU) & Millicom International Cellular (NASDAQ:TIGO) Head to Head Review

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Millicom International Cellular (NASDAQ:TIGO) and China Unicom (Hong Kong) (NYSE:CHU) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Insider & Institutional Ownership

1.7% of Millicom International Cellular shares are owned by institutional investors. Comparatively, 1.1% of China Unicom (Hong Kong) shares are owned by institutional investors. 77.5% of China Unicom (Hong Kong) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Millicom International Cellular and China Unicom (Hong Kong)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Millicom International Cellular -0.18% 0.87% 0.30%
China Unicom (Hong Kong) N/A N/A N/A

Dividends

Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 4.3%. China Unicom (Hong Kong) pays an annual dividend of $0.07 per share and has a dividend yield of 0.6%. Millicom International Cellular pays out 910.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Unicom (Hong Kong) pays out 63.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Millicom International Cellular and China Unicom (Hong Kong)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Millicom International Cellular $4.07 billion 1.50 -$10.00 million $0.29 209.48
China Unicom (Hong Kong) $40.68 billion 0.86 $281.00 million $0.11 104.00

China Unicom (Hong Kong) has higher revenue and earnings than Millicom International Cellular. China Unicom (Hong Kong) is trading at a lower price-to-earnings ratio than Millicom International Cellular, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Millicom International Cellular has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, China Unicom (Hong Kong) has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Millicom International Cellular and China Unicom (Hong Kong), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Millicom International Cellular 0 0 0 0 N/A
China Unicom (Hong Kong) 0 4 2 0 2.33

About Millicom International Cellular

Millicom International Cellular SA engages in the provision of cable and mobile services in Latin America and Africa. It operates through the Latin America and Africa segments. The company was founded on December 14, 1990 and is headquartered in Luxembourg.

About China Unicom (Hong Kong)

China Unicom Hong Kong Limited, an integrated telecommunications operator, provides telecommunications services and telecommunications products worldwide. It offers mobile voice services that enable its subscribers to make and receive phone calls comprising local calls, domestic and international long-distance calls, intra-provincial roaming, inter-provincial roaming, and international roaming; and mobile data, mobile reading, mobile music, WO app store, SMS, personalized ring-back tone, and other wireless information services. The company also provides fixed-line broadband access, data communications, fixed-line voice, fixed-line voice value-added, and fixed-line other services. In addition, it offers bundled services that integrate mobiles and fixed-line services in a service package; and Internet data center, cloud computing, big data, Internet-of-things, information technology, and other services. Additionally, it provides telecommunications network construction, planning, and technical consulting services; consultancy, survey, design, and contract services for information and construction projects in the telecommunications industry; Internet information, e-payment, telecommunications networks leasing, magazine publishing, project consultation and management, and property management services; advertising design, production, agency, and publication services; and technology development, transfer, and consulting services. The company also offers customer, data processing, and tourism and information services, as well as engages in the financial services, auto informatization, and venture capital investment businesses; and sells mobile handsets, fixed-line terminals, and accessories. As of December 31, 2017, it had 284.16 million mobile billing subscribers and 76,539,000 fixed-line broadband subscribers. The company was incorporated in 2000 and is based in Central, Hong Kong. China Unicom Hong Kong Limited operates as a subsidiary of China Unicom BVI Limited

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