Array Digital Infrastructure (NYSE:AD) vs. Chunghwa Telecom (NYSE:CHT) Head-To-Head Review

Chunghwa Telecom (NYSE:CHT) and Array Digital Infrastructure (NYSE:AD) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Institutional & Insider Ownership

2.1% of Chunghwa Telecom shares are owned by institutional investors. Comparatively, 18.0% of Array Digital Infrastructure shares are owned by institutional investors. 1.0% of Chunghwa Telecom shares are owned by insiders. Comparatively, 0.1% of Array Digital Infrastructure shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chunghwa Telecom	16.11%	10.00%	7.36%
Array Digital Infrastructure	250.79%	8.52%	4.15%

Volatility & Risk

Chunghwa Telecom has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Array Digital Infrastructure has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Chunghwa Telecom and Array Digital Infrastructure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	0	2	0	0	2.00
Array Digital Infrastructure	0	3	3	0	2.50

Array Digital Infrastructure has a consensus target price of $47.40, indicating a potential upside of 40.18%. Given Array Digital Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe Array Digital Infrastructure is more favorable than Chunghwa Telecom.

Earnings & Valuation

This table compares Chunghwa Telecom and Array Digital Infrastructure”s gross 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	4.66	$1.23 billion	$1.65	27.61
Array Digital Infrastructure	$213.53 million	13.70	$48.76 million	$6.20	5.45

Chunghwa Telecom has higher revenue and earnings than Array Digital Infrastructure. Array Digital Infrastructure 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 Array Digital Infrastructure

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.