Analyzing Orbital Tracking (OTCMKTS:TRKK) and China Telecom (OTCMKTS:CHA)

China Telecom (NYSE:CHA) and Orbital Tracking (OTCMKTS:TRKK) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares China Telecom and Orbital Tracking’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Telecom N/A N/A N/A
Orbital Tracking -25.33% -85.84% -50.20%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for China Telecom and Orbital Tracking, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Telecom 3 2 1 0 1.67
Orbital Tracking 0 0 0 0 N/A

China Telecom currently has a consensus price target of $53.90, suggesting a potential upside of 12.90%. Given China Telecom’s higher probable upside, research analysts clearly believe China Telecom is more favorable than Orbital Tracking.

Institutional & Insider Ownership

0.5% of China Telecom shares are held by institutional investors. 15.6% of Orbital Tracking shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares China Telecom and Orbital Tracking’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Telecom $54.85 billion 0.70 $3.20 billion $3.81 12.53
Orbital Tracking $5.73 million 0.15 -$1.20 million N/A N/A

China Telecom has higher revenue and earnings than Orbital Tracking.

Dividends

China Telecom pays an annual dividend of $1.43 per share and has a dividend yield of 3.0%. Orbital Tracking does not pay a dividend. China Telecom pays out 37.5% of its earnings in the form of a dividend. China Telecom has increased its dividend for 2 consecutive years.

Risk and Volatility

China Telecom has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Orbital Tracking has a beta of 3.36, suggesting that its share price is 236% more volatile than the S&P 500.

Summary

China Telecom beats Orbital Tracking on 11 of the 14 factors compared between the two stocks.

China Telecom Company Profile

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services primarily in the People's Republic of China. It offers wireline voice services, including local wireline telephone services and long distance wireline services; CDMA mobile voice services, such as local calls, domestic and international long distance calls, intra-provincial roaming, and inter-provincial roaming and international roaming; wireline Internet access services comprising dial-up and broadband services; wireless Internet access services; and wireline, Internet, and mobile value-added services. The company also provides Best Tone information services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge, and software development services. In addition, it offers managed data services that include digital data network, frame relay, and asynchronous transfer mode services for government agencies, large corporations, and institutions; and leased line services, as well as sells, repairs, and maintains customer-end equipment. Further, the company provides international telecommunications services, including network equipment, international Internet access and transit, Internet data center, and mobile virtual network services in various countries, including the Asia Pacific, Europe, Africa, South America, and North America; and music production and related information, instant messenger, and e-commerce services, as well as sells telecommunications terminals. As of December 31, 2018, it had approximately 303 million mobile subscribers; 146 million wireline broadband subscribers; and 116 million access lines in service. The company was incorporated in 2002 and is based in Wanchai, Hong Kong. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.

Orbital Tracking Company Profile

Orbital Tracking Corp., through its subsidiaries, develops, distributes, and resells satellite enabled communications hardware; and provides products, airtime, and related services to customers in the United States and internationally. The company also provides equipment and airtime for use on various satellite networks, as well as short-term rental service for customers who want to use its equipment for a limited time period. In addition, it offers a range of portable satellite voice, data, and tracking solutions, including handheld satellite phones, personal and asset tracking devices, portable high speed broadband terminals, satellite Wi-Fi hotspots. Further, the company provides two-way voice and data transmissions services, as well as prepaid and monthly contract satellite communications airtime options. Additionally, it operates mapping and tracking portals orbitaltrack.com and gtctrack.com, which display real-time asset location reports, including position, speed, altitude, and heading, as well as past location and movement history reports on various tracking devices. The company is also developing a dual-mode tracker utilizes both cellular and satellite technology to provide tracking, automatically switching between the cellular and satellite links for use in populated and remote areas, including trans-oceanic routes. It serves customers, including businesses, U.S. and foreign governments, non-governmental and charitable organizations, military users, resellers, and private individuals. The company was formerly known as Great West Resources, Inc. and changed its name to Orbital Tracking Corp. in January 2015. Orbital Tracking Corp. was incorporated in 1997 and is based in Aventura, Florida.

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