Chunghwa Telecom Co. (NYSE: CHT) and Consolidated Communications Holdings (NASDAQ:CNSL) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

3.6% of Chunghwa Telecom Co. shares are owned by institutional investors. Comparatively, 67.4% of Consolidated Communications Holdings shares are owned by institutional investors. 1.0% of Chunghwa Telecom Co. shares are owned by insiders. Comparatively, 3.0% of Consolidated Communications Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Chunghwa Telecom Co. has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Consolidated Communications Holdings has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Chunghwa Telecom Co. and Consolidated Communications Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chunghwa Telecom Co. 1 0 0 0 1.00
Consolidated Communications Holdings 1 4 1 1 2.29

Consolidated Communications Holdings has a consensus price target of $23.60, suggesting a potential upside of 27.57%. Given Consolidated Communications Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Consolidated Communications Holdings is more favorable than Chunghwa Telecom Co..

Dividends

Chunghwa Telecom Co. pays an annual dividend of $1.28 per share and has a dividend yield of 3.7%. Consolidated Communications Holdings pays an annual dividend of $1.55 per share and has a dividend yield of 8.4%. Chunghwa Telecom Co. pays out 83.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Consolidated Communications Holdings pays out 2,214.3% 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 Co. and Consolidated Communications Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chunghwa Telecom Co. 16.68% 10.38% 8.51%
Consolidated Communications Holdings 0.48% 14.49% 1.32%

Earnings & Valuation

This table compares Chunghwa Telecom Co. and Consolidated Communications Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chunghwa Telecom Co. $7.49 billion 3.56 $2.58 billion $1.54 22.35
Consolidated Communications Holdings $724.27 million 1.30 $256.94 million $0.07 264.29

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

Summary

Consolidated Communications Holdings beats Chunghwa Telecom Co. on 10 of the 17 factors compared between the two stocks.

About Chunghwa Telecom Co.

Chunghwa Telecom Co., Ltd. provides telecommunication services. The Company’s segments include Domestic fixed communications business, which is engaged in the provision of local telephone services, domestic long distance telephone services, broadband access and related services; Mobile communications business, which is engaged in the provision of mobile services, sales of mobile handsets and data cards, and related services; Internet business, which is engaged in the provision of HiNet services and related services; International fixed communications business, which includes international long distance telephone services, international leased line services, international data services, satellite services, and information and communication technology (ICT) and other international services, and Others, which is engaged in the provision of non-telecom services. Its ICT service includes integrated services, such as intelligent energy network and intelligent transportation system.

About Consolidated Communications Holdings

Consolidated Communications Holdings, Inc. is a holding company with operating subsidiaries that provide integrated communications services in consumer, commercial and carrier channels in California, Illinois, Iowa, Kansas, Minnesota, Missouri, North Dakota, Pennsylvania, South Dakota, Texas and Wisconsin. The Company operates as both an Incumbent Local Exchange Carrier (ILEC) and a Competitive Local Exchange Carrier (CLEC) dependent upon the territory served. The Company provides a range of services and products that include local and long-distance service, broadband Internet access, video services, Voice over Internet Protocol (VoIP), private line services, carrier grade access services, network capacity services over its regional fiber optic networks, cloud data services, data center and managed services, directory publishing, equipment sales and cloud data services. The Company markets services to its residential customers either individually or as a bundled package.

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