Globe Telecom (OTCMKTS:GTMEF – Get Free Report) and Chunghwa Telecom (NYSE:CHT – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Globe Telecom and Chunghwa Telecom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Globe Telecom | 0 | 0 | 0 | 0 | 0.00 |
| Chunghwa Telecom | 1 | 1 | 0 | 0 | 1.50 |
Insider and Institutional Ownership
12.0% of Globe Telecom shares are held by institutional investors. Comparatively, 2.1% of Chunghwa Telecom shares are held by institutional investors. 1.0% of Chunghwa Telecom shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Globe Telecom | N/A | N/A | N/A | $89.75 | 0.31 |
| Chunghwa Telecom | $7.58 billion | 4.44 | $1.23 billion | $1.65 | 26.33 |
Chunghwa Telecom has higher revenue and earnings than Globe Telecom. Globe Telecom is trading at a lower price-to-earnings ratio than Chunghwa Telecom, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Globe Telecom and Chunghwa Telecom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Globe Telecom | N/A | N/A | N/A |
| Chunghwa Telecom | 16.11% | 10.00% | 7.36% |
Dividends
Globe Telecom pays an annual dividend of $55.48 per share and has a dividend yield of 196.7%. Chunghwa Telecom pays an annual dividend of $1.25 per share and has a dividend yield of 2.9%. Globe Telecom pays out 61.8% of its earnings in the form of a dividend. 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. Globe Telecom is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Chunghwa Telecom beats Globe Telecom on 7 of the 11 factors compared between the two stocks.
About Globe Telecom
Globe Telecom, Inc. provides telecommunications services to individual customers, small and medium-sized businesses, and corporate and enterprise clients in the Philippines. It operates through Mobile Communications Services and Wireline Communication Services segments. The company offers digital wireless communications services under the Globe Postpaid and Prepaid, and Touch Mobile brands; long distance communication or carrier services; broadband, as well as wireline voice and data communication services; and electronic payment and remittance services under the GCash brand. It provides value-added services, such as inbound and outbound short messaging, content downloading, mobile commerce, and other add-on services. The company also provides human capital management, business process, shared service support, Information technology and electronic, software development, IT system integration and consultancy, and advertising services. In addition, it offers marketing and distribution; data management; data center management; capital investment funds management; warehouse and logistics services; and support and shared services, as well as specific solutions for various industries. The company was incorporated in 1935 and is based in Taguig, the Philippines.
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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