Liberty Latin America (NASDAQ:LILA – Get Free Report) and AT&T (NYSE:T – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Liberty Latin America and AT&T”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Liberty Latin America | $4.44 billion | 0.36 | -$611.20 million | ($3.06) | -2.64 |
| AT&T | $125.65 billion | 1.58 | $21.95 billion | $3.05 | 9.30 |
Volatility and Risk
Liberty Latin America has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, AT&T has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices 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 price target of $9.75, suggesting a potential upside of 20.52%. AT&T has a consensus price target of $29.93, suggesting a potential upside of 5.55%. Given Liberty Latin America’s higher probable upside, equities analysts plainly believe Liberty Latin America is more favorable than AT&T.
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 | -13.76% | -50.24% | -5.01% |
| AT&T | 17.47% | 12.33% | 3.70% |
Insider and 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. 11.4% 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
AT&T beats Liberty Latin America on 12 of the 15 factors compared between the two stocks.
About Liberty Latin America
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
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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