Critical Analysis: Array Digital Infrastructure (NYSE:AD) vs. Chunghwa Telecom (NYSE:CHT)

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

Valuation & Earnings

This table compares Array Digital Infrastructure and Chunghwa Telecom”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Array Digital Infrastructure	$162.96 million	18.81	$48.76 million	$6.20	5.71
Chunghwa Telecom	$7.58 billion	4.72	$1.23 billion	$1.65	27.95

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.

Profitability

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

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

Institutional & Insider Ownership

18.0% of Array Digital Infrastructure shares are owned by institutional investors. Comparatively, 2.1% of Chunghwa Telecom shares are owned by institutional investors. 0.1% of Array Digital Infrastructure shares are owned by insiders. Comparatively, 1.0% of Chunghwa Telecom shares are owned 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 & Volatility

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

Analyst Recommendations

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

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

Array Digital Infrastructure presently has a consensus price target of $47.40, indicating a potential upside of 33.79%. Given Array Digital Infrastructure’s stronger consensus rating and higher probable upside, equities analysts plainly believe Array Digital Infrastructure is more favorable than Chunghwa Telecom.

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.

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.