Chunghwa Telecom (CHT) & U.S. Cellular (USM) Critical Review

Chunghwa Telecom (NYSE: CHT) and U.S. Cellular (NYSE:USM) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

How to Become a New Pot Stock Millionaire

This is a summary of recent ratings and recommmendations for Chunghwa Telecom and U.S. Cellular, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chunghwa Telecom 1 0 0 0 1.00
U.S. Cellular 0 0 0 0 N/A

Institutional and Insider Ownership

3.0% of Chunghwa Telecom shares are owned by institutional investors. Comparatively, 14.8% of U.S. Cellular shares are owned by institutional investors. 1.0% of Chunghwa Telecom shares are owned by company insiders. Comparatively, 1.6% of U.S. Cellular shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Chunghwa Telecom and U.S. Cellular’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chunghwa Telecom $7.48 billion 4.00 $1.28 billion $1.64 23.49
U.S. Cellular $3.89 billion 0.93 $12.00 million $0.58 70.66

Chunghwa Telecom has higher revenue and earnings than U.S. Cellular. Chunghwa Telecom is trading at a lower price-to-earnings ratio than U.S. Cellular, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Chunghwa Telecom has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, U.S. Cellular has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Dividends

Chunghwa Telecom pays an annual dividend of $1.29 per share and has a dividend yield of 3.3%. U.S. Cellular does not pay a dividend. Chunghwa Telecom pays out 78.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Chunghwa Telecom and U.S. Cellular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chunghwa Telecom 17.08% 10.57% 8.68%
U.S. Cellular 0.31% 1.22% 0.63%

Summary

Chunghwa Telecom beats U.S. Cellular on 8 of the 13 factors compared between the two stocks.

About Chunghwa Telecom

Chunghwa Telecom Co., Ltd. engages in the provision of telecommunication and information related services. It operates through the following business segments: Domestic Fixed Communications, Mobile Communications, Internet, International Fixed Communications, and Others. The company was founded on June 15, 1996 and is headquartered in Taipei, Taiwan.

About U.S. Cellular

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers postpaid and prepaid service plans with voice, messaging, and data usage option services; and smartphone messaging, data, and Internet services, which allow the customer to access the Web and social network sites, e-mail, text, picture, and video messaging, as well as to utilize GPS navigation, and browse and download various applications. It also provides roaming services; machine to machine solutions and software applications in the areas of monitor and control, business automation/operations, communication, and asset management; wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers; and accessories comprising wireless basics, such as cases, screen protectors, chargers, and memory cards. In addition, the company offers assortment of consumer electronics consisting of headphones, speakers, wearables, and home automation products. It serves approximately 5.1 million customers, including retail consumers, governments, and small-to-mid-size business customers in construction, retail, agriculture, professional services, and real estate industries. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as Website and telesales. As of December 31, 2017, it operated 256 retail stores and kiosks. The company was founded in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.

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.

Leave a Reply