AT&T (NYSE: T) and BlackBerry Limited (NYSE:BB) are both mid-cap telecommunications services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

This table compares AT&T and BlackBerry Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AT&T 7.87% 9.73% 2.90%
BlackBerry Limited 49.62% 2.70% 1.78%

Analyst Ratings

This is a breakdown of recent ratings and price targets for AT&T and BlackBerry Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AT&T 0 16 7 0 2.30
BlackBerry Limited 3 10 4 0 2.06

AT&T currently has a consensus target price of $43.00, indicating a potential upside of 26.58%. BlackBerry Limited has a consensus target price of $9.54, indicating a potential downside of 10.72%. Given AT&T’s stronger consensus rating and higher probable upside, equities analysts plainly believe AT&T is more favorable than BlackBerry Limited.

Dividends

AT&T pays an annual dividend of $1.96 per share and has a dividend yield of 5.8%. BlackBerry Limited does not pay a dividend. AT&T pays out 94.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BlackBerry Limited has raised its dividend for 32 consecutive years.

Insider and Institutional Ownership

55.0% of AT&T shares are owned by institutional investors. Comparatively, 63.5% of BlackBerry Limited shares are owned by institutional investors. 0.1% of AT&T shares are owned by insiders. Comparatively, 22.7% of BlackBerry Limited shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares AT&T and BlackBerry Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AT&T $161.93 billion 1.29 $49.37 billion $2.07 16.41
BlackBerry Limited N/A N/A N/A $0.84 12.73

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

Volatility & Risk

AT&T has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, BlackBerry Limited has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Summary

AT&T beats BlackBerry Limited on 9 of the 15 factors compared between the two stocks.

About AT&T

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.

About BlackBerry Limited

BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services. The BlackBerry Technology Solutions business unit consists of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform and Intellectual Property and Patent Licensing (IPPL).

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