Critical Analysis: PLDT (NYSE:PHI) and Chorus (OTCMKTS:CHRYY)

PLDT (NYSE:PHI) and Chorus (OTCMKTS:CHRYY) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Dividends

PLDT pays an annual dividend of $1.11 per share and has a dividend yield of 6.1%. Chorus pays an annual dividend of $1.15 per share and has a dividend yield of 4.1%. PLDT pays out 46.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares PLDT and Chorus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLDT	$3.80 billion	1.03	$498.72 million	$2.40	7.56
Chorus	$599.03 million	4.10	$2.36 million	N/A	N/A

PLDT has higher revenue and earnings than Chorus.

Volatility and Risk

PLDT has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Chorus has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares PLDT and Chorus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PLDT	13.62%	27.37%	5.40%
Chorus	N/A	N/A	N/A

Institutional & Insider Ownership

2.3% of PLDT shares are held by institutional investors. 0.7% of PLDT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PLDT and Chorus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLDT	1	2	0	0	1.67
Chorus	0	0	0	0	0.00

Summary

PLDT beats Chorus on 9 of the 12 factors compared between the two stocks.

About PLDT

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet broadband distribution, operations support, software development, and satellite information and messaging services; and sells Wi-Fi access equipment. The company also provides fixed line telecommunications services; business infrastructure and solutions; intelligent data processing and implementation, and data analytics insight generation services; and information and communications infrastructure for Internet-based services, e-commerce, customer relationship management, and information technology (IT) related services. In addition, it offers managed IT outsourcing, Internet-based purchasing, IT consulting and professional, and bills printing and other related value-added services; distributes Filipino channels and content services; and provides full-services customer rewards and loyalty programs. Further, the company engages in the sale of mobile handsets, broadband data routers, tablets, and accessories; and cross-border digital platforms. Additionally, it provides gaming support services; mobile internet and broadband, and data services; content provider and develops mobile application; IT solution; data and network; domestic leased lines; alternative messaging solutions, such as over-the-top services, social media, and messenger application; inbound roaming and other services; mobile prepaid and postpaid services; and fixed wireless broadband services. The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016. PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.

About Chorus

Chorus Limited, together with its subsidiaries, engages in the provision of fixed line communications infrastructure services in New Zealand. It offers phone and broadband services for residential and business customers; data and voice services; and solutions for transport and infrastructure. The company also builds and maintains a network of fibre and copper cables, local telephone exchanges, and cabinets. In addition, it offers co-location and value-added network services. The company was incorporated in 2011 and is based in Wellington, New Zealand.