AT&T (OTCMKTS: SPKKY) and Spark New Zealand (OTCMKTS:SPKKY) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Risk and Volatility
AT&T has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Spark New Zealand has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
64.7% of AT&T shares are owned by institutional investors. Comparatively, 0.3% of Spark New Zealand shares are owned by institutional investors. 0.1% of AT&T shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares AT&T and Spark New Zealand’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AT&T||$160.55 billion||1.22||$29.45 billion||$3.05||10.47|
|Spark New Zealand||$2.61 billion||1.84||$275.25 million||$0.82||15.97|
AT&T has higher revenue and earnings than Spark New Zealand. AT&T is trading at a lower price-to-earnings ratio than Spark New Zealand, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for AT&T and Spark New Zealand, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spark New Zealand||0||0||0||0||N/A|
AT&T presently has a consensus price target of $38.28, suggesting a potential upside of 19.85%. Given AT&T’s higher probable upside, research analysts clearly believe AT&T is more favorable than Spark New Zealand.
This table compares AT&T and Spark New Zealand’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spark New Zealand||N/A||N/A||N/A|
AT&T pays an annual dividend of $2.00 per share and has a dividend yield of 6.3%. Spark New Zealand pays an annual dividend of $0.64 per share and has a dividend yield of 4.9%. AT&T pays out 65.6% of its earnings in the form of a dividend. Spark New Zealand pays out 78.0% 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 raised its dividend for 33 consecutive years. AT&T is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
AT&T beats Spark New Zealand on 13 of the 16 factors compared between the two stocks.
AT&T Inc. provides communications and digital entertainment services. The company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility, and International. The Business Solutions segment offers wireless services, strategic services, legacy voice, data services, wireless equipment, and other services to multinational companies, governmental and wholesale customers, and individual subscribers. The Entertainment Group segment provides video entertainment and audio programming channels to approximately 25 million subscribers; broadband and Internet services to 13.5 million residential subscribers; local and long-distance voice services to residential customers, as well as DSL Internet access; and voice services provided over IP-based technology. The Consumer Mobility segment offers postpaid and prepaid wireless voice and data communications services to consumers, and wireless wholesale and resale subscribers; consulting, advertising, and application and co-location services; and sells a variety of handsets, wirelessly enabled computers, and personal computer wireless data cards through company-owned stores, agents, or third-party retail stores, as well as accessories, such as carrying cases, hands-free devices, and other items. The International segment offers digital television services, including local and international digital video entertainment and audio programming under the DIRECTV and SKY brands throughout Latin America. This segment offers postpaid and prepaid wireless services in Mexico to approximately 15 million subscribers under the AT&T and Unefon brands; and sells a range of handsets. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was founded in 1983 and is based in Dallas, Texas.
About Spark New Zealand
Spark New Zealand Limited, together with its subsidiaries, provides telecommunications, and information and communications technology (ICT) products and services primarily in New Zealand. The company's Spark Home, Mobile & Business segment offers a range of services and content, data, and voice services across fibre, wireless, copper broadband, mobile, online video entertainment, and nationwide Wi-Fi zones to consumers and small-medium business customers. Its Spark Digital segment integrates information technology (IT) and telecommunications services to provide converged ICT solutions. The company's Spark Connect & Platforms segment is involved in Spark New Zealand's network and IT operations, shared business operations, and digital and service transformation activities. Its Spark Ventures & Wholesale segment develops a portfolio of new businesses; and supervises wholesale products and services. The company also provides IT infrastructure, data center, business cloud, subscription video-on-demand, big data analytics, and outsourced telecommunications services; and retails telecommunications products and services. It has approximately 2.392 million mobile connections. The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. Spark New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.
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