T vs. VZ, AMX, QCOM, SAP, INTC, AMD, INTU, IBM, ADBE, and TXN
Should you be buying AT&T stock or one of its competitors? The main competitors of AT&T include Verizon Communications (VZ), América Móvil (AMX), QUALCOMM (QCOM), SAP (SAP), Intel (INTC), Advanced Micro Devices (AMD), Intuit (INTU), International Business Machines (IBM), Adobe (ADBE), and Texas Instruments (TXN). These companies are all part of the "computer and technology" sector.
AT&T vs.
Verizon Communications (NYSE:VZ) and AT&T (NYSE:T) are both large-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, community ranking, institutional ownership, media sentiment, risk, dividends, analyst recommendations, profitability and earnings.
Verizon Communications presently has a consensus target price of $47.63, indicating a potential upside of 27.26%. AT&T has a consensus target price of $22.00, indicating a potential upside of 18.98%. Given Verizon Communications' higher probable upside, research analysts clearly believe Verizon Communications is more favorable than AT&T.
Verizon Communications has a net margin of 15.53% compared to AT&T's net margin of -6.60%. Verizon Communications' return on equity of 24.60% beat AT&T's return on equity.
61.0% of Verizon Communications shares are owned by institutional investors. Comparatively, 51.9% of AT&T shares are owned by institutional investors. 0.1% of Verizon Communications shares are owned by insiders. Comparatively, 0.1% of AT&T shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Verizon Communications pays an annual dividend of $2.61 per share and has a dividend yield of 7.0%. AT&T pays an annual dividend of $1.11 per share and has a dividend yield of 6.0%. Verizon Communications pays out 51.6% of its earnings in the form of a dividend. AT&T pays out -93.3% 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 increased its dividend for 18 consecutive years. Verizon Communications is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
AT&T received 316 more outperform votes than Verizon Communications when rated by MarketBeat users. Likewise, 68.43% of users gave AT&T an outperform vote while only 59.11% of users gave Verizon Communications an outperform vote.
Verizon Communications has higher revenue and earnings than AT&T. AT&T is trading at a lower price-to-earnings ratio than Verizon Communications, indicating that it is currently the more affordable of the two stocks.
In the previous week, Verizon Communications had 4 more articles in the media than AT&T. MarketBeat recorded 21 mentions for Verizon Communications and 17 mentions for AT&T. AT&T's average media sentiment score of 0.72 beat Verizon Communications' score of 0.53 indicating that AT&T is being referred to more favorably in the news media.
Verizon Communications has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, AT&T has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Summary
Verizon Communications beats AT&T on 13 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding T and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
