Cincinnati Bell (NYSE:CBB) and AT&T (NYSE:T) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.
This is a summary of current recommendations for Cincinnati Bell and AT&T, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation & Earnings
This table compares Cincinnati Bell and AT&T’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cincinnati Bell||$1.29 billion||0.36||$35.10 million||($0.08)||-116.75|
|AT&T||$160.55 billion||1.16||$29.45 billion||$3.05||9.91|
AT&T has higher revenue and earnings than Cincinnati Bell. Cincinnati Bell is trading at a lower price-to-earnings ratio than AT&T, indicating that it is currently the more affordable of the two stocks.
AT&T pays an annual dividend of $2.00 per share and has a dividend yield of 6.6%. Cincinnati Bell does not pay a dividend. AT&T pays out 65.6% of its earnings in the form of a dividend. AT&T has raised its dividend for 33 consecutive years.
Risk & Volatility
Cincinnati Bell has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, AT&T has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
This table compares Cincinnati Bell and AT&T’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
90.9% of Cincinnati Bell shares are owned by institutional investors. Comparatively, 63.5% of AT&T shares are owned by institutional investors. 1.4% of Cincinnati Bell shares are owned by insiders. Comparatively, 0.1% of AT&T shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
AT&T beats Cincinnati Bell on 12 of the 17 factors compared between the two stocks.
Cincinnati Bell Company Profile
Cincinnati Bell Inc., together with its subsidiaries, provides diversified telecommunications and technology services to residential and business customers in the United States. It operates in two segments, Entertainment and Communications, and IT Services and Hardware. The Entertainment and Communications segment offers data services, including high-speed Internet access, data transport, and interconnection services, as well as metro-Ethernet products; and voice local services, such as Fioptics voice lines, voice over Internet protocol, long distance, digital trunking, switched access, caller identification, voicemail, call waiting, and call return. This segment also provides video services comprising entertainment channels, including digital music, local, movie, and sports programming with high-definition (HD) channels, parental controls, HD DVR, and video on-demand. In addition, this segment undertakes wiring projects for business customers; and offers advertising, directory assistance, maintenance, and information services. The IT Services and Hardware segment provides professional services, such as consulting, staffing, installation, and project-based engagements, including engineering and installation of voice, connectivity and IT technologies, development of digital application solutions, and staff augmentation; and hosted solutions comprising converged IP communications platforms of data, voice, video, and mobility applications. This segment also offers various services, including hardware and software components management services; cloud-based audio, video, and Web conferencing services; cloud call center and call recording application services; cloud services, such as virtual data center, storage, and backup services; and monitoring and managing technology environments and applications, as well as sells, architects, and installs telecommunications and IT infrastructure equipment. The company was founded in 1873 and is headquartered in Cincinnati, Ohio.
AT&T Company Profile
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.
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