Analyzing AT&T (NYSE:T) and Liberty Latin America (NASDAQ:LILA)

Liberty Latin America (NASDAQ:LILAGet Free Report) and AT&T (NYSE:TGet Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Liberty Latin America -16.57% -54.11% -5.95%
AT&T 17.47% 12.33% 3.70%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Liberty Latin America and AT&T, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liberty Latin America 2 0 1 0 1.67
AT&T 1 7 14 1 2.65

Liberty Latin America currently has a consensus target price of $9.75, suggesting a potential upside of 26.13%. AT&T has a consensus target price of $29.93, suggesting a potential upside of 7.35%. Given Liberty Latin America’s higher possible upside, equities analysts clearly believe Liberty Latin America is more favorable than AT&T.

Insider & Institutional Ownership

18.5% of Liberty Latin America shares are owned by institutional investors. Comparatively, 57.1% of AT&T shares are owned by institutional investors. 12.0% of Liberty Latin America shares are owned by insiders. Comparatively, 0.1% of AT&T shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Liberty Latin America has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, AT&T has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Valuation & Earnings

This table compares Liberty Latin America and AT&T”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liberty Latin America $4.46 billion 0.35 -$657.00 million ($3.69) -2.09
AT&T $125.65 billion 1.55 $21.95 billion $3.05 9.14

AT&T has higher revenue and earnings than Liberty Latin America. Liberty Latin America 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 Liberty Latin America on 12 of the 15 factors compared between the two stocks.

About Liberty Latin America

(Get Free Report)

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.

About AT&T

(Get Free Report)

AT&T, Inc. is a holding company, which engages in the provision of telecommunications and technology services. It operates through the Communications and Latin America segments. The Communications segment offers wireless, wireline telecom, and broadband services to businesses and consumers located in the US and businesses globally. The Latin America segment provides wireless services and equipment in Mexico. The company was founded in 1983 and is headquartered in Dallas, TX.

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