Koninklijke KPN (OTCMKTS:KKPNY – Get Free Report) and Chunghwa Telecom (NYSE:CHT – Get Free Report) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Profitability
This table compares Koninklijke KPN and Chunghwa Telecom’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Koninklijke KPN | N/A | N/A | N/A |
Chunghwa Telecom | 16.27% | 9.72% | 7.17% |
Earnings & Valuation
This table compares Koninklijke KPN and Chunghwa Telecom”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Koninklijke KPN | $6.10 billion | 2.90 | $917.62 million | N/A | N/A |
Chunghwa Telecom | $7.16 billion | N/A | $1.13 billion | $1.53 | 28.41 |
Chunghwa Telecom has higher revenue and earnings than Koninklijke KPN.
Insider & Institutional 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Koninklijke KPN and Chunghwa Telecom, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Koninklijke KPN | 0 | 1 | 0 | 0 | 2.00 |
Chunghwa Telecom | 0 | 1 | 0 | 0 | 2.00 |
Risk & Volatility
Koninklijke KPN has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Chunghwa Telecom has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.
Dividends
Koninklijke KPN pays an annual dividend of $0.13 per share and has a dividend yield of 2.9%. Chunghwa Telecom pays an annual dividend of $1.30 per share and has a dividend yield of 3.0%. 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.
Summary
Chunghwa Telecom beats Koninklijke KPN on 8 of the 10 factors compared between the two stocks.
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.
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.
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