Millicom International Cellular (OTCMKTS:MICCF – Get Free Report) and Chunghwa Telecom (NYSE:CHT – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Institutional and Insider Ownership
38.6% of Millicom International Cellular shares are owned by institutional investors. Comparatively, 2.1% of Chunghwa Telecom shares are owned by institutional investors. 1.0% of Chunghwa Telecom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Millicom International Cellular and Chunghwa Telecom, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Millicom International Cellular | 0 | 0 | 0 | 0 | 0.00 |
| Chunghwa Telecom | 1 | 1 | 0 | 0 | 1.50 |
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Millicom International Cellular | N/A | N/A | N/A |
| Chunghwa Telecom | 16.11% | 9.84% | 7.40% |
Valuation & Earnings
This table compares Millicom International Cellular and Chunghwa Telecom”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Millicom International Cellular | N/A | N/A | N/A | $26.53 | 0.70 |
| Chunghwa Telecom | $7.58 billion | 4.32 | $1.23 billion | $1.65 | 25.62 |
Chunghwa Telecom has higher revenue and earnings than Millicom International Cellular. Millicom International Cellular is trading at a lower price-to-earnings ratio than Chunghwa Telecom, indicating that it is currently the more affordable of the two stocks.
Dividends
Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 14.3%. Chunghwa Telecom pays an annual dividend of $1.29 per share and has a dividend yield of 3.1%. Millicom International Cellular pays out 9.9% of its earnings in the form of a dividend. Chunghwa Telecom pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millicom International Cellular is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Chunghwa Telecom beats Millicom International Cellular on 7 of the 11 factors compared between the two stocks.
About Millicom International Cellular
Millicom International Cellular SA engages in the cable and mobile services. It operates through the Latin America and Africa geographical segments. The Latin America segment includes the Guatemala and Honduras joint ventures. The Africa segment comprises of the operations in Tanzania. The company was founded on December 14, 1990 and is headquartered in Luxembourg.
About Chunghwa Telecom
Chunghwa Telecom Co., Ltd., together with its subsidiaries, provides telecommunication services in Taiwan and internationally. It operates through Consumer Business, Enterprise Business, International Business, and Others segments. The company offers local, domestic long distance, and international long distance fixed-line telephone services; mobile services such as prepaid and postpaid plans; broadband plans; and internet and data services. Chunghwa Telecom Co., Ltd. was incorporated in 1996 and is headquartered in Taipei City, Taiwan.
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