Analyzing Chunghwa Telecom (NYSE:CHT) and NTT (OTCMKTS:NTTYY)

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

Valuation and Earnings

This table compares Chunghwa Telecom and NTT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chunghwa Telecom	$238.99 billion	0.15	$1.23 billion	$1.64	27.40
NTT	$95.72 billion	0.77	$6.84 billion	$2.10	10.76

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

Analyst Ratings

This is a summary of current ratings for Chunghwa Telecom and NTT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	0	2	0	0	2.00
NTT	0	2	0	0	2.00

Dividends

Chunghwa Telecom pays an annual dividend of $1.28 per share and has a dividend yield of 2.8%. NTT pays an annual dividend of $0.61 per share and has a dividend yield of 2.7%. Chunghwa Telecom pays out 78.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NTT pays out 29.0% of its earnings in the form of a dividend.

Insider & Institutional Ownership

2.1% of Chunghwa Telecom shares are held by institutional investors. Comparatively, 0.1% of NTT shares are held by institutional investors. 1.0% of Chunghwa Telecom shares are held 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.

Profitability

This table compares Chunghwa Telecom and NTT’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%
NTT	7.26%	10.39%	2.63%

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, NTT has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.

Summary

Chunghwa Telecom beats NTT on 8 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 NTT

Nippon Telegraph and Telephone Corporation operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. The Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers consulting, system and software development, network system, cloud, global data center, and related services. The Others segment engages in the real estate, energy, and other businesses. The company was founded in 1952 and is headquartered in Tokyo, Japan.