Contrasting CalAmp (CAMP) and AT&T (T)

CalAmp (NASDAQ: CAMP) and AT&T (NYSE:T) are both telecommunications services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Dividends

AT&T pays an annual dividend of $1.96 per share and has a dividend yield of 5.0%. CalAmp 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. AT&T has increased its dividend for 32 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
CalAmp 5.00% 19.20% 7.92%
AT&T 8.00% 14.49% 4.32%

Risk and Volatility

CalAmp has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, AT&T has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Insider and Institutional Ownership

72.1% of CalAmp shares are held by institutional investors. Comparatively, 55.8% of AT&T shares are held by institutional investors. 5.3% of CalAmp shares are held by insiders. Comparatively, 0.1% of AT&T shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CalAmp $351.10 million 2.14 -$7.90 million $0.47 44.79
AT&T $163.79 billion 1.47 $12.98 billion $2.07 18.92

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CalAmp 1 2 5 0 2.50
AT&T 0 16 10 0 2.38

CalAmp presently has a consensus target price of $25.00, suggesting a potential upside of 18.76%. AT&T has a consensus target price of $42.97, suggesting a potential upside of 9.71%. Given CalAmp’s stronger consensus rating and higher probable upside, research analysts clearly believe CalAmp is more favorable than AT&T.

Summary

CalAmp beats AT&T on 10 of the 17 factors compared between the two stocks.

CalAmp Company Profile

CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.

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.

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