WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Chunghwa Telecom Co Ltd generates 73% more annual revenue ($240.29B vs $139.15B). CHT leads profitability with a 16.2% profit margin vs 12.5%. VZ appears more attractively valued with a PEG of 0.88. VZ earns a higher WallStSmart Score of 69/100 (B-).

CHT

Buy

59

out of 100

Grade: C

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

VZ

Strong Buy

69

out of 100

Grade: B-

Growth: 4.0Profit: 7.5Value: 6.7Quality: 3.5
Piotroski: 2/9Altman Z: 1.11
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
VZSignificantly Overvalued (-27.1%)

Margin of Safety

-27.1%

Fair Value

$36.77

Current Price

$45.37

$8.60 premium

UndervaluedFair: $36.77Overvalued

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

VZ6 strengths · Avg: 8.5/10
P/E RatioValuation
11.5x10/10

Attractively priced relative to earnings

Market CapQuality
$196.54B9/10

Large-cap with strong market position

PEG RatioValuation
0.888/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

Free Cash FlowQuality
$3.78B8/10

Generating 3.8B 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
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

VZ4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

EPS GrowthGrowth
4.3%4/10

4.3% earnings growth

Debt/EquityHealth
1.903/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : VZ

The strongest argument for VZ centers on P/E Ratio, Market Cap, PEG Ratio. 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 : VZ

The primary concerns for VZ are Revenue Growth, EPS Growth, Debt/Equity. Debt-to-equity of 1.90 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

VZ carries more volatility with a beta of 0.22 — expect wider price swings.

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

CHT generates stronger free cash flow (6.8B), providing more financial flexibility.

Bottom Line

VZ scores higher overall (69/100 vs 59/100). CHT offers better value entry with a 65.8% 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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