Chunghwa Telecom (NYSE:CHT) vs. Lumen Technologies (NYSE:LUMN) Financial Review

Chunghwa Telecom (NYSE:CHT) and Lumen Technologies (NYSE:LUMN) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Chunghwa Telecom and Lumen Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	0	0	0	0	0.00
Lumen Technologies	1	5	2	0	2.13

Lumen Technologies has a consensus target price of $4.8214, suggesting a potential upside of 28.40%. Given Lumen Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Lumen Technologies is more favorable than Chunghwa Telecom.

Volatility & Risk

Chunghwa Telecom has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Lumen Technologies has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Insider and Institutional Ownership

2.1% of Chunghwa Telecom shares are held by institutional investors. Comparatively, 66.2% of Lumen Technologies shares are held by institutional investors. 1.0% of Chunghwa Telecom shares are held by insiders. Comparatively, 2.3% of Lumen Technologies 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 Lumen Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chunghwa Telecom	16.27%	9.75%	7.34%
Lumen Technologies	-9.19%	-158.40%	-0.59%

Earnings and Valuation

This table compares Chunghwa Telecom and Lumen Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chunghwa Telecom	$7.16 billion	4.86	$1.13 billion	$1.53	29.35
Lumen Technologies	$13.11 billion	0.29	-$55.00 million	($1.18)	-3.18

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

Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services to business and residential customers in the United States and internationally. The company operates in two segments, Business and Mass Markets. It offers dark fiber, edge cloud services, internet protocol, managed security, software-defined wide area networks, secure access service edge, unified communications and collaboration, and optical wavelengths services; ethernet and VPN data networks services; and legacy services to manage cash flow, including time division multiplexing voice, private line, and other legacy services, as well as sells communication equipment, and IT solutions. The company also provides high speed and lower speed broadband service to residential and small business customers; local and long-distance voice services, professional services, and other ancillary services; and federal broadband and state support programs. It serves its products and services under the Lumen, Quantum Fiber, and CenturyLink brands. The company was formerly known as CenturyLink, Inc. and changed its name to Lumen Technologies, Inc. in September 2020. Lumen Technologies, Inc. was incorporated in 1968 and is headquartered in Monroe, Louisiana.