Chunghwa Telecom (NYSE:CHT – Get Free Report) and AT&T (NYSE:T – Get Free Report) are both large-cap communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations for Chunghwa Telecom and AT&T, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chunghwa Telecom | 0 | 2 | 0 | 0 | 2.00 |
| AT&T | 1 | 6 | 12 | 0 | 2.58 |
AT&T has a consensus price target of $28.55, indicating a potential upside of 34.51%. Given AT&T’s stronger consensus rating and higher possible upside, analysts plainly believe AT&T is more favorable than Chunghwa Telecom.
Institutional and Insider Ownership
2.1% of Chunghwa Telecom shares are owned by institutional investors. Comparatively, 57.1% of AT&T shares are owned by institutional investors. 1.0% of Chunghwa Telecom shares are owned by insiders. Comparatively, 0.1% of AT&T 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.
Dividends
Chunghwa Telecom pays an annual dividend of $1.25 per share and has a dividend yield of 2.6%. AT&T pays an annual dividend of $1.11 per share and has a dividend yield of 5.2%. Chunghwa Telecom pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AT&T pays out 60.0% of its earnings in the form of a dividend. AT&T is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Chunghwa Telecom and AT&T’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chunghwa Telecom | 16.11% | 10.00% | 7.36% |
| AT&T | 10.19% | 13.41% | 3.92% |
Volatility and Risk
Chunghwa Telecom has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, AT&T has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.
Valuation & Earnings
This table compares Chunghwa Telecom and AT&T”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chunghwa Telecom | $7.58 billion | 4.99 | $1.23 billion | $1.65 | 29.59 |
| AT&T | $125.65 billion | 1.14 | $21.95 billion | $1.85 | 11.47 |
AT&T has higher revenue and earnings than Chunghwa Telecom. AT&T is trading at a lower price-to-earnings ratio than Chunghwa Telecom, indicating that it is currently the more affordable of the two stocks.
Summary
AT&T beats Chunghwa Telecom on 10 of the 16 factors compared between the two stocks.
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.
About AT&T
AT&T, Inc. is a holding company, which engages in the provision of telecommunications and technology services. It operates through the Communications and Latin America segments. The Communications segment offers wireless, wireline telecom, and broadband services to businesses and consumers located in the US and businesses globally. The Latin America segment provides wireless services and equipment in Mexico. The company was founded in 1983 and is headquartered in Dallas, TX.
Receive News & Ratings for Chunghwa Telecom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chunghwa Telecom and related companies with MarketBeat.com's FREE daily email newsletter.
