Comparing Chunghwa Telecom (NYSE:CHT) & Telecom Italia (OTCMKTS:TIIAY)

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

Profitability

This table compares Chunghwa Telecom and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chunghwa Telecom	16.23%	9.96%	7.31%
Telecom Italia	N/A	N/A	N/A

Valuation and Earnings

This table compares Chunghwa Telecom and Telecom Italia”s 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	4.47	$1.23 billion	$1.61	27.17
Telecom Italia	$15.88 billion	1.11	-$660.08 million	N/A	N/A

Chunghwa Telecom has higher earnings, but lower revenue than Telecom Italia.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	0	2	0	0	2.00
Telecom Italia	0	2	1	1	2.75

Insider and Institutional Ownership

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

Risk and Volatility

Chunghwa Telecom has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Telecom Italia has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Summary

Chunghwa Telecom beats Telecom Italia on 7 of the 12 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 Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.