Financial Survey: Millicom International Cellular (OTCMKTS:MICCF) versus Chunghwa Telecom (NYSE:CHT)

Chunghwa Telecom (NYSE:CHT) and Millicom International Cellular (OTCMKTS:MICCF) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Chunghwa Telecom and Millicom International Cellular”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chunghwa Telecom	$7.58 billion	4.32	$1.23 billion	$1.65	25.62
Millicom International Cellular	N/A	N/A	N/A	$26.53	0.70

Chunghwa Telecom has higher revenue and earnings than Millicom International Cellular. Millicom International Cellular 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

Chunghwa Telecom pays an annual dividend of $1.29 per share and has a dividend yield of 3.1%. Millicom International Cellular pays an annual dividend of $2.64 per share and has a dividend yield of 14.3%. Chunghwa Telecom pays out 78.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millicom International Cellular pays out 9.9% of its earnings in the form of a dividend. Millicom International Cellular is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Chunghwa Telecom and Millicom International Cellular, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chunghwa Telecom	1	1	0	0	1.50
Millicom International Cellular	0	0	0	0	0.00

Institutional and Insider Ownership

2.1% of Chunghwa Telecom shares are owned by institutional investors. Comparatively, 38.6% of Millicom International Cellular shares are owned by institutional investors. 1.0% of Chunghwa Telecom shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chunghwa Telecom	16.11%	9.84%	7.40%
Millicom International Cellular	N/A	N/A	N/A

Summary

Chunghwa Telecom beats Millicom International Cellular on 7 of the 11 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 Millicom International Cellular

Millicom International Cellular SA engages in the cable and mobile services. It operates through the Latin America and Africa geographical segments. The Latin America segment includes the Guatemala and Honduras joint ventures. The Africa segment comprises of the operations in Tanzania. The company was founded on December 14, 1990 and is headquartered in Luxembourg.