Comparing PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) and Chunghwa Telecom (NYSE:CHT)

PT Telekomunikasi Indonesia, Tbk (NYSE:TLK) and Chunghwa Telecom (NYSE:CHT) are both large-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for PT Telekomunikasi Indonesia, Tbk and Chunghwa Telecom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PT Telekomunikasi Indonesia, Tbk	0	1	0	0	2.00
Chunghwa Telecom	0	0	0	0	0.00

Insider and Institutional Ownership

2.1% of Chunghwa Telecom shares are owned by institutional investors. 1.0% of Chunghwa Telecom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

PT Telekomunikasi Indonesia, Tbk has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Chunghwa Telecom has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.

Valuation & Earnings

This table compares PT Telekomunikasi Indonesia, Tbk and Chunghwa Telecom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PT Telekomunikasi Indonesia, Tbk	$147,679.00 billion	0.00	$1.47 billion	$1.43	13.19
Chunghwa Telecom	$7.16 billion	4.73	$1.13 billion	$1.53	28.56

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

Dividends

PT Telekomunikasi Indonesia, Tbk pays an annual dividend of $1.04 per share and has a dividend yield of 5.5%. Chunghwa Telecom pays an annual dividend of $1.30 per share and has a dividend yield of 3.0%. PT Telekomunikasi Indonesia, Tbk pays out 72.7% of its earnings in the form of a dividend. Chunghwa Telecom pays out 85.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PT Telekomunikasi Indonesia, Tbk is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares PT Telekomunikasi Indonesia, Tbk and Chunghwa Telecom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PT Telekomunikasi Indonesia, Tbk	15.49%	14.72%	7.94%
Chunghwa Telecom	16.27%	9.72%	7.17%

Summary

PT Telekomunikasi Indonesia, Tbk beats Chunghwa Telecom on 8 of the 14 factors compared between the two stocks.

About PT Telekomunikasi Indonesia, Tbk

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides information and communications technology, and telecommunications network services worldwide. The company operates through mobile, consumer, enterprise, Wholesale and International Business, and Other segments. The Mobile segment offers mobile voice, SMS, value added services, and mobile broadband services. The Consumer segment provides fixed wireline, pay TV, and internet services; and other telecommunication services to home customers. The Enterprise segment offers end-to-end solution to corporate and institutions. The Wholesale and International Business segment provides interconnection services, broadband access, information technology services, data, and internet services to other licensed operator and institutions. The Other segment offers digital content products, big data, business to business commerce, and financial services to individual and corporate customers. The company also engages in leasing of towers, and digital support and other telecommunication services; provision of consultation service of hardware, computer software, and data center, as well as multimedia portal services; business management consulting; property development and management; trading service related to telecommunication, information, multimedia technology, entertainment, and investment; and digital content exchange hub services. The company was founded in 1884 and is headquartered in Bandung, Indonesia.

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.