Taiwan Mobile vs Chunghwa Telecom Which Offers More Value?

Taiwan Mobile and Chunghwa Telecom are two major players in the telecommunications industry in Taiwan. Both companies have shown consistent growth and profitability over the years, attracting investors looking to capitalize on the booming telecom market in the region. Taiwan Mobile has been focusing on expanding its mobile services and developing innovative technologies, while Chunghwa Telecom is known for its strong network infrastructure and reliable services. Investors looking to diversify their portfolio in the Taiwanese market may find these two stocks worth considering.

Taiwan Mobile or Chunghwa Telecom?

When comparing Taiwan Mobile and Chunghwa Telecom, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Taiwan Mobile and Chunghwa Telecom.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Taiwan Mobile has a dividend yield of 3.79%, while Chunghwa Telecom has a dividend yield of 3.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Taiwan Mobile reports a 5-year dividend growth of -5.15% year and a payout ratio of 109.76%. On the other hand, Chunghwa Telecom reports a 5-year dividend growth of -0.38% year and a payout ratio of 120.68%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Taiwan Mobile P/E ratio at 26.98 and Chunghwa Telecom's P/E ratio at 31.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Taiwan Mobile P/B ratio is 4.40 while Chunghwa Telecom's P/B ratio is 2.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Taiwan Mobile has seen a 5-year revenue growth of 0.48%, while Chunghwa Telecom's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Taiwan Mobile's ROE at 16.34% and Chunghwa Telecom's ROE at 7.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$113.00 for Taiwan Mobile and $37.45 for Chunghwa Telecom. Over the past year, Taiwan Mobile's prices ranged from NT$96.90 to NT$119.00, with a yearly change of 22.81%. Chunghwa Telecom's prices fluctuated between $35.92 and $40.62, with a yearly change of 13.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.