AT&T (T) Competitors

Verizon Communications (NYSE:VZ) and AT&T (NYSE:T) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability, media sentiment and valuation.

Which has more volatility and risk, VZ or T?

Verizon Communications has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, AT&T has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Is VZ or T more profitable?

Verizon Communications has a net margin of 13.14% compared to AT&T's net margin of 9.64%. Verizon Communications' return on equity of 19.66% beat AT&T's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Verizon Communications	13.14%	19.66%	5.13%
AT&T	9.64%	13.63%	4.08%

Does the media prefer VZ or T?

In the previous week, AT&T had 9 more articles in the media than Verizon Communications. MarketBeat recorded 88 mentions for AT&T and 79 mentions for Verizon Communications. Verizon Communications' average media sentiment score of 1.19 beat AT&T's score of 0.97 indicating that Verizon Communications is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Verizon Communications	61 Very Positive mention(s)	2 Positive mention(s)	13 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Positive
AT&T	51 Very Positive mention(s)	9 Positive mention(s)	14 Neutral mention(s)	12 Negative mention(s)	1 Very Negative mention(s)	Positive

Do insiders & institutionals have more ownership in VZ or T?

62.1% of Verizon Communications shares are held by institutional investors. Comparatively, 57.1% of AT&T shares are held by institutional investors. 0.1% of Verizon Communications shares are held by insiders. Comparatively, 0.1% of AT&T shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Which has higher earnings and valuation, VZ or T?

Verizon Communications has higher revenue and earnings than AT&T. Verizon Communications is trading at a lower price-to-earnings ratio than AT&T, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verizon Communications	$134.79B	1.37	$17.51B	$4.20	10.40
AT&T	$122.34B	1.70	$10.95B	$1.63	17.72

Do analysts rate VZ or T?

Verizon Communications currently has a consensus target price of $47.25, indicating a potential upside of 8.22%. AT&T has a consensus target price of $28.90, indicating a potential upside of 0.07%. Given Verizon Communications' higher probable upside, analysts clearly believe Verizon Communications is more favorable than AT&T.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verizon Communications	0 Sell rating(s)	9 Hold rating(s)	6 Buy rating(s)	2 Strong Buy rating(s)	2.59
AT&T	1 Sell rating(s)	6 Hold rating(s)	16 Buy rating(s)	1 Strong Buy rating(s)	2.71

Is VZ or T a better dividend stock?

Verizon Communications pays an annual dividend of $2.71 per share and has a dividend yield of 6.2%. AT&T pays an annual dividend of $1.11 per share and has a dividend yield of 3.8%. Verizon Communications pays out 64.5% of its earnings in the form of a dividend. AT&T pays out 68.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Verizon Communications has raised its dividend for 20 consecutive years. Verizon Communications is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Verizon Communications beats AT&T on 14 of the 20 factors compared between the two stocks.