Quebecor (OTCMKTS:QBCRF – Get Free Report) and AT&T (NYSE:T – Get Free Report) are both large-cap communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Insider and Institutional 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings 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 | 6 | 12 | 0 | 2.58 |
AT&T has a consensus target price of $28.55, indicating a potential upside of 33.83%. Given AT&T’s stronger consensus rating and higher probable upside, analysts clearly believe AT&T is more favorable than Quebecor.
Valuation and Earnings
This table compares Quebecor and AT&T”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quebecor | $4.06 billion | 2.72 | $612.64 million | $1.46 | 33.80 |
| AT&T | $125.65 billion | 1.14 | $21.95 billion | $1.85 | 11.53 |
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.
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 | 16.30% | 33.21% | 7.17% |
| AT&T | 10.19% | 13.41% | 3.92% |
Dividends
Quebecor pays an annual dividend of $1.28 per share and has a dividend yield of 2.6%. AT&T pays an annual dividend of $1.11 per share and has a dividend yield of 5.2%. 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 10 of the 15 factors compared between the two stocks.
About Quebecor
Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. The Telecommunications segment offers internet access, television distribution, mobile and wireline telephony, business solutions, and over-the-top video services. The Media segment operates an over-the-air television network and specialty television services; soundstage and equipment rental and postproduction services for the film and television industries; printing, publishing, and distribution of daily newspapers; news and entertainment digital platforms; publishing and distribution of magazines; production and distribution of audiovisual content; and out-of-home advertising business. The Sports and Entertainment segment engages in the operation and management of the Videotron Centre; show production, sporting, and cultural event management; publishing and distribution of books; production of music; and the operation of Quebec Maritimes Junior Hockey League team. The company was incorporated in 1965 and is headquartered in Montreal, Canada. Quebecor Inc. operates as a subsidiary of Les Placements Peladeau, Inc.
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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