Critical Analysis: AT&T (NYSE:T) and Nuvera Communications (OTCMKTS:NUVR)

AT&T (NYSE:T) and Nuvera Communications (OTCMKTS:NUVR) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Institutional & Insider Ownership

49.1% of AT&T shares are held by institutional investors. Comparatively, 0.0% of Nuvera Communications shares are held by institutional investors. 0.1% of AT&T shares are held by insiders. Comparatively, 7.9% of Nuvera Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

AT&T has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Nuvera Communications has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Dividends

AT&T pays an annual dividend of $2.08 per share and has a dividend yield of 7.7%. Nuvera Communications pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. AT&T pays out 65.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
AT&T -1.11% 12.78% 4.37%
Nuvera Communications 19.06% 11.29% 6.04%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for AT&T and Nuvera Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AT&T 3 7 8 0 2.28
Nuvera Communications 0 0 0 0 N/A

AT&T currently has a consensus price target of $31.06, suggesting a potential upside of 14.28%. Given AT&T’s higher possible upside, research analysts plainly believe AT&T is more favorable than Nuvera Communications.

Valuation and Earnings

This table compares AT&T and Nuvera Communications’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AT&T $171.76 billion 1.13 -$5.18 billion $3.18 8.55
Nuvera Communications $64.91 million 1.85 $9.84 million N/A N/A

Nuvera Communications has lower revenue, but higher earnings than AT&T.

AT&T Company Profile

AT&T, Inc. is a holding company, which engages in the provision of telecommunications media and technology service. It operates through the following segments: Communications, WarnerMedia, and Latin America. The Communications segment provides services to businesses and consumers located in the U.S., or in U.S. territories, and businesses globally. The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content over various physical and digital formats. The Latin America segment provides entertainment and wireless services outside of the U.S.. The company was founded in 1983 and is headquartered in Dallas, TX.

Nuvera Communications Company Profile

Nuvera Communications, Inc. engages in the provision of diversified communications services through its subsidiaries. It offers voice, digital television, wireless, Internet services, and technology solutions for residential and business clients. The company was founded on May 1, 1905 and is headquartered in New Ulm, MN.

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