Financial Contrast: AT&T (NYSE:T) vs. America Movil SAB de CV ADR Series L (NYSE:AMX)
AT&T (NYSE:T) and America Movil SAB de CV ADR Series L (NYSE:AMX) 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 dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Insider & Institutional Ownership
52.9% of AT&T shares are held by institutional investors. Comparatively, 6.9% of America Movil SAB de CV ADR Series L shares are held by institutional investors. 0.1% of AT&T shares are held by company insiders. Comparatively, 1.0% of America Movil SAB de CV ADR Series L shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares AT&T and America Movil SAB de CV ADR Series L’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|America Movil SAB de CV ADR Series L||5.59%||22.63%||3.72%|
This is a breakdown of current recommendations for AT&T and America Movil SAB de CV ADR Series L, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|America Movil SAB de CV ADR Series L||0||3||3||0||2.50|
AT&T currently has a consensus target price of $38.90, indicating a potential downside of 1.22%. America Movil SAB de CV ADR Series L has a consensus target price of $17.67, indicating a potential upside of 11.11%. Given America Movil SAB de CV ADR Series L’s higher possible upside, analysts plainly believe America Movil SAB de CV ADR Series L is more favorable than AT&T.
Earnings and Valuation
This table compares AT&T and America Movil SAB de CV ADR Series L’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AT&T||$170.76 billion||1.69||$19.37 billion||$3.52||11.19|
|America Movil SAB de CV ADR Series L||$54.06 billion||0.97||$2.67 billion||$0.80||19.88|
AT&T has higher revenue and earnings than America Movil SAB de CV ADR Series L. AT&T is trading at a lower price-to-earnings ratio than America Movil SAB de CV ADR Series L, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
AT&T has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, America Movil SAB de CV ADR Series L has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
AT&T pays an annual dividend of $2.04 per share and has a dividend yield of 5.2%. America Movil SAB de CV ADR Series L pays an annual dividend of $0.38 per share and has a dividend yield of 2.4%. AT&T pays out 58.0% of its earnings in the form of a dividend. America Movil SAB de CV ADR Series L pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
AT&T beats America Movil SAB de CV ADR Series L on 10 of the 15 factors compared between the two stocks.
AT&T Inc. provides telecommunication, media, and technology services worldwide. The company operates through four segments: Communications, WarnerMedia, Latin America, and Xandr. The Communications segment provides wireless and wireline telecom, video, and broadband and Internet services; video entertainment services using satellite, IP-based, and streaming options; and audio programming services under the AT&T, Cricket, AT&T PREPAID, and DIRECTV brands to residential and business customers. This segment also sells handsets, wirelessly enabled computers, and wireless data cards manufactured by various suppliers for use with company's voice and data services, as well as various accessories, such as carrying cases and hands-free devices through the company-owned stores, agents, and third-party retail stores. The WarnerMedia segment primarily produces, distributes, and licenses television programming and feature films; distributes home entertainment products in physical and digital formats; and produces and distributes mobile and console games, and consumer products, as well as offers brand licensing services. It also operates cable networks, multichannel premium pay television, and over-the-top services; and digital media properties. The Latin America segment offers video entertainment and audio programming services under the DIRECTV and SKY brands primarily to residential customers; pay-TV services, including HD sports video content; and postpaid and prepaid wireless services under the AT&T and Unefon brands, as well as sells various handsets through company-owned stores, agents, and third-party retail stores. The Xandr segment provides digital advertising services. 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 America Movil SAB de CV ADR Series L
América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America, the United States, the Caribbean, and Europe. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It also provides data services, such as Internet access, messaging, and other wireless entertainment and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers data center, data administration, and hosting services to residential and corporate clients, as well as residential broadband services; IT solutions for small businesses and large corporations; and cable and satellite pay television subscriptions. Further, it sells equipment, accessories, and computers; and telephone directories, publishing, call center, advertising, media, and software development services. Additionally, the company sells video, audio, and other media content through the Internet directly from the content provider to the viewer or end user. It sells its products and services through a network of retailers and service centers to retail customers; and through sales force to corporate customers. América Móvil, S.A.B. de C.V. was founded in 2000 and is based in Mexico City, Mexico.
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