AT&T (NYSE: T) is one of 36 public companies in the “Wireless Telecommunications Services” industry, but how does it contrast to its competitors? We will compare AT&T to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.

Risk & Volatility

AT&T has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, AT&T’s competitors have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.

Institutional and Insider Ownership

55.0% of AT&T shares are held by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are held by institutional investors. 0.1% of AT&T shares are held by insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

AT&T pays an annual dividend of $1.96 per share and has a dividend yield of 5.1%. AT&T pays out 92.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Wireless Telecommunications Services” companies pay a dividend yield of 3.1% and pay out 62.1% of their earnings in the form of a dividend. AT&T has raised its dividend for 32 consecutive years.

Profitability

This table compares AT&T and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AT&T 8.12% 14.53% 4.43%
AT&T Competitors -999.64% 3.14% -6.43%

Analyst Recommendations

This is a breakdown of recent recommendations for AT&T and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AT&T 0 16 10 0 2.38
AT&T Competitors 574 1706 1796 70 2.33

AT&T presently has a consensus price target of $43.60, suggesting a potential upside of 13.45%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 20.68%. Given AT&T’s competitors higher possible upside, analysts plainly believe AT&T has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares AT&T and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AT&T $161.93 billion $49.37 billion 18.13
AT&T Competitors $28.18 billion $8.25 billion -5.38

AT&T has higher revenue and earnings than its competitors. AT&T is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

AT&T beats its competitors on 9 of the 15 factors compared.

AT&T Company Profile

AT&T Inc. is a holding company. The Company is a provider of communications and digital entertainment services in the United States and the world. The Company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility and International. The Company offers its services and products to consumers in the United States, Mexico and Latin America and to businesses and other providers of telecommunications services worldwide. It also owns and operates three regional TV sports networks, and retains non-controlling interests in another regional sports network and a network dedicated to game-related programming, as well as Internet interactive game playing. Its services and products include wireless communications, data/broadband and Internet services, digital video services, local and long-distance telephone services, telecommunications equipment, managed networking, and wholesale services. Its subsidiaries include AT&T Mobility and SKY Brasil Servicos Ltda.

Receive News & Ratings for AT&T Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AT&T Inc. and related companies with MarketBeat.com's FREE daily email newsletter.