Head to Head Analysis: Chunghwa Telecom (NYSE:CHT) & Koninklijke KPN (OTCMKTS:KKPNF)

Chunghwa Telecom (NYSE:CHT) and Koninklijke KPN (OTCMKTS:KKPNF) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Institutional & Insider Ownership

2.1% of Chunghwa Telecom shares are held by institutional investors. 1.0% of Chunghwa Telecom shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Chunghwa Telecom and Koninklijke KPN, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	0	2	0	0	2.00
Koninklijke KPN	0	1	0	1	3.00

Volatility and Risk

Chunghwa Telecom has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Koninklijke KPN has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Valuation & Earnings

This table compares Chunghwa Telecom and Koninklijke KPN”s top-line 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	4.64	$1.23 billion	$1.64	27.69
Koninklijke KPN	$6.59 billion	2.88	$967.12 million	$0.26	18.77

Chunghwa Telecom has higher revenue and earnings than Koninklijke KPN. Koninklijke KPN 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 Chunghwa Telecom and Koninklijke KPN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chunghwa Telecom	16.23%	9.90%	7.31%
Koninklijke KPN	15.10%	26.25%	7.27%

Summary

Chunghwa Telecom beats Koninklijke KPN on 10 of the 13 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 Koninklijke KPN

Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and mobile telephony, fixed and mobile broadband internet, and television services to retail and business consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, including cloud, workspace, and cybersecurity services; interconnect traffic, visitor roaming, and digital products; and NL-ix, an interconnect exchange, as well as sells handsets, peripheral equipment, and software licenses. In addition, the company offers virus and malware scanners; anti-virus licenses; 1Password, a password management tool; DNSSEC, a technology that prevents customers from being led to fake websites; KPN Veilig Netwerk Thuis, a smart network security; Censornet, which includes web security, cloud application security broker, email protection, and awareness training; SuperVision, which provides digital governance solutions for workspaces; and OneMonitoring to ensure early detection of cyber incidents. Further, it provides fiber networks; and IT services for integrating healthcare systems and optimizing communication between healthcare providers. The company distributes its products and services under the KPN, XS4ALL, Simyo, KPN Security, KPN Health, Solcon, Inspark, and KPN Partner Network brands. The company was formerly known as Koninklijke PTT Nederland NV and changed its name to Koninklijke KPN N.V. in June 1998. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.