VZ vs. T, AMX, INTU, QCOM, IBM, TXN, NOW, SAP, INTC, and AMAT
Should you be buying Verizon Communications stock or one of its competitors? The main competitors of Verizon Communications include AT&T (T), América Móvil (AMX), Intuit (INTU), QUALCOMM (QCOM), International Business Machines (IBM), Texas Instruments (TXN), ServiceNow (NOW), SAP (SAP), Intel (INTC), and Applied Materials (AMAT). These companies are all part of the "computer and technology" sector.
Verizon Communications (NYSE:VZ) and AT&T (NYSE:T) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, media sentiment, valuation, earnings, analyst recommendations, dividends, institutional ownership, community ranking and risk.
Verizon Communications pays an annual dividend of $2.66 per share and has a dividend yield of 7.1%. AT&T pays an annual dividend of $1.11 per share and has a dividend yield of 6.9%. Verizon Communications pays out 53.6% of its earnings in the form of a dividend. AT&T pays out -72.1% 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 a net margin of 15.58% compared to AT&T's net margin of -9.29%. Verizon Communications' return on equity of 21.26% beat AT&T's return on equity.
Verizon Communications has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, AT&T has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
61.1% of Verizon Communications shares are owned by institutional investors. Comparatively, 53.7% of AT&T shares are owned by institutional investors. 0.0% 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
AT&T received 312 more outperform votes than Verizon Communications when rated by MarketBeat users. Likewise, 67.97% of users gave AT&T an outperform vote while only 59.03% 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.
Verizon Communications presently has a consensus price target of $41.50, indicating a potential upside of 11.32%. AT&T has a consensus price target of $20.90, indicating a potential upside of 28.93%. Given AT&T's higher possible upside, analysts plainly believe AT&T is more favorable than Verizon Communications.
In the previous week, AT&T had 6 more articles in the media than Verizon Communications. MarketBeat recorded 23 mentions for AT&T and 17 mentions for Verizon Communications. Verizon Communications' average media sentiment score of 1.22 beat AT&T's score of 0.36 indicating that Verizon Communications is being referred to more favorably in the media.
Summary
Verizon Communications beats AT&T on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding VZ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis 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.
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