WallStSmart

Chunghwa Telecom Co Ltd (CHT)vsSK Telecom Co Ltd ADR (SKM)

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Smart Verdict

WallStSmart Research — data-driven comparison

SK Telecom Co Ltd ADR generates 6990% more annual revenue ($17.04T vs $240.29B). CHT leads profitability with a 16.2% profit margin vs 2.1%. SKM appears more attractively valued with a PEG of 0.88. CHT earns a higher WallStSmart Score of 59/100 (C).

CHT

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 7.0Value: 6.7Quality: 8.0
Piotroski: 6/9Altman Z: 2.96

SKM

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 4.5Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHTUndervalued (+65.8%)

Margin of Safety

+65.8%

Fair Value

$123.94

Current Price

$44.56

$79.38 discount

UndervaluedFair: $123.94Overvalued

Intrinsic value data unavailable for SKM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHT3 strengths · Avg: 8.3/10
Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Operating MarginProfitability
21.8%8/10

Strong operational efficiency at 21.8%

Free Cash FlowQuality
$6.79B8/10

Generating 6.8B in free cash flow

SKM3 strengths · Avg: 8.7/10
Free Cash FlowQuality
$718.88B10/10

Generating 718.9B in free cash flow

PEG RatioValuation
0.888/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

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

Expensive relative to growth rate

P/E RatioValuation
28.4x4/10

Moderate valuation

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

SKM4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.3%3/10

ROE of 0.3% — below average capital efficiency

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

P/E RatioValuation
63.4x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-1.4%2/10

Revenue declined 1.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : CHT

The strongest argument for CHT centers on Debt/Equity, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 21.8%.

Bull Case : SKM

The strongest argument for SKM centers on Free Cash Flow, PEG Ratio, Price/Book. PEG of 0.88 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 : SKM

The primary concerns for SKM are Return on Equity, Profit Margin, P/E Ratio. A P/E of 63.4x leaves little room for execution misses. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

CHT profiles as a mature stock while SKM is a value play — different risk/reward profiles.

SKM carries more volatility with a beta of 0.67 — expect wider price swings.

CHT is growing revenue faster at 7.5% — sustainability is the question.

SKM generates stronger free cash flow (718.9B), providing more financial flexibility.

Bottom Line

CHT scores higher overall (59/100 vs 48/100), backed by strong 16.2% margins. Both earn "Buy" and "Hold" 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.

SK Telecom Co Ltd ADR

COMMUNICATION SERVICES · TELECOM SERVICES · USA

SK Telecom Co., Ltd. provides wireless telecommunications services in South Korea and internationally. The company is headquartered in Seoul, South Korea.

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