AT&T (T) vs. BlackBerry Limited (BB) Critical Contrast

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

Dividends

AT&T pays an annual dividend of $1.96 per share and has a dividend yield of 5.9%. 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 increased its dividend for 32 consecutive years.

Analyst Recommendations

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

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, suggesting a potential upside of 29.64%. BlackBerry Limited has a consensus target price of $9.54, suggesting a potential downside of 12.84%. Given AT&T’s stronger consensus rating and higher probable upside, equities analysts clearly believe AT&T is more favorable than BlackBerry Limited.

Insider & Institutional Ownership

55.1% of AT&T shares are held by institutional investors. Comparatively, 63.3% of BlackBerry Limited shares are held by institutional investors. 0.1% of AT&T shares are held by insiders. Comparatively, 22.7% of BlackBerry Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

AT&T has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, BlackBerry Limited has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

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 8.00% 14.49% 4.32%
BlackBerry Limited 49.62% 2.70% 1.78%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
AT&T $163.79 billion 1.24 $12.98 billion $2.07 16.02
BlackBerry Limited $1.31 billion 4.44 -$1.21 billion $0.84 13.04

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.

Summary

AT&T beats BlackBerry Limited on 9 of the 17 factors compared between the two stocks.

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.

BlackBerry Limited Company Profile

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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