AT&T (NYSE:T) and Quebecor (OTCMKTS:QBCRF) Head-To-Head Review

Quebecor (OTCMKTS:QBCRF) and AT&T (NYSE:T) are both large-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quebecor	17.19%	34.31%	7.57%
AT&T	10.19%	13.41%	3.92%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Quebecor and AT&T, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quebecor	0	3	3	0	2.50
AT&T	1	9	12	0	2.50

AT&T has a consensus target price of $27.56, indicating a potential upside of 25.14%. Given AT&T’s higher possible upside, analysts clearly believe AT&T is more favorable than Quebecor.

Institutional & Insider Ownership

57.1% of AT&T 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 is poised for long-term growth.

Valuation & Earnings

This table compares Quebecor and AT&T”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quebecor	$4.06 billion	2.98	$612.64 million	$1.46	37.00
AT&T	$125.65 billion	1.18	$21.95 billion	$1.85	11.91

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

Dividends

Quebecor pays an annual dividend of $1.28 per share and has a dividend yield of 2.4%. AT&T pays an annual dividend of $1.11 per share and has a dividend yield of 5.0%. Quebecor pays out 87.7% 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 pays out 60.0% of its earnings in the form of a dividend. AT&T is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

AT&T beats Quebecor on 9 of the 14 factors compared between the two stocks.

About Quebecor

Quebecor is a Montreal-based communications and media company founded in 1965 by Pierre Péladeau. Its operations span telecommunications, television, news and publishing, with most of its business focused on Quebec and additional services and media activities in other Canadian markets. Through Videotron, Quebecor provides cable television, internet, mobile and business telecommunications services. Its media operations include TVA Group’s television channels and production activities, as well as newspapers such as Le Journal de Montréal and Le Journal de Québec , alongside publishing and digital media businesses.

About AT&T

AT&T Inc. (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions. The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.