WallStSmart

Chunghwa Telecom Co Ltd (CHT)vsVerizon Communications Inc (VZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Chunghwa Telecom Co Ltd generates 76% more annual revenue ($244.93B vs $138.90B). CHT leads profitability with a 16.1% profit margin vs 11.6%. VZ appears more attractively valued with a PEG of 0.89. VZ earns a higher WallStSmart Score of 66/100 (B-).

CHT

Buy

61

out of 100

Grade: C+

Growth: 4.7Profit: 7.0Value: 6.7Quality: 7.5
Piotroski: 6/9Altman Z: 2.98

VZ

Strong Buy

66

out of 100

Grade: B-

Growth: 2.7Profit: 7.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 1.11
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHTUndervalued (+65.6%)

Margin of Safety

+65.6%

Fair Value

$123.41

Current Price

$45.90

$77.51 discount

UndervaluedFair: $123.41Overvalued
VZSignificantly Overvalued (-30.6%)

Margin of Safety

-30.6%

Fair Value

$37.00

Current Price

$48.12

$11.12 premium

UndervaluedFair: $37.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHT3 strengths · Avg: 9.0/10
Free Cash FlowQuality
$15.21B10/10

Generating 15.2B in free cash flow

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

VZ6 strengths · Avg: 8.3/10
Market CapQuality
$210.27B10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

Free Cash FlowQuality
$6.43B8/10

Generating 6.4B in free cash flow

Areas to Watch

CHT4 concerns · Avg: 4.0/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

P/E RatioValuation
27.4x4/10

Moderate valuation

Price/BookValuation
12.3x4/10

Trading at 12.3x book value

EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

VZ4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.813/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-22.0%2/10

Earnings declined 22.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : CHT

The strongest argument for CHT centers on Free Cash Flow, Debt/Equity, Operating Margin. Profitability is solid with margins at 16.1% and operating margin at 21.6%.

Bull Case : VZ

The strongest argument for VZ centers on Market Cap, PEG Ratio, P/E Ratio. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : CHT

The primary concerns for CHT are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : VZ

The primary concerns for VZ are Debt/Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 1.81 is elevated, increasing financial risk.

Key Dynamics to Monitor

CHT profiles as a mature stock while VZ is a declining play — different risk/reward profiles.

VZ carries more volatility with a beta of 0.24 — expect wider price swings.

CHT is growing revenue faster at 8.2% — sustainability is the question.

CHT generates stronger free cash flow (15.2B), providing more financial flexibility.

Bottom Line

VZ scores higher overall (66/100 vs 61/100). CHT offers better value entry with a 65.6% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Chunghwa Telecom Co Ltd

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Chunghwa Telecom Co., Ltd. provides telecommunications services in Taiwan. The company is headquartered in Taipei City, Taiwan.

Verizon Communications Inc

COMMUNICATION SERVICES · TELECOM SERVICES · USA

Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York City, but is incorporated in Delaware.

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