Critical Contrast: Altice USA (ATUS) vs. BT Group (NYSE:BT)

BT Group (NYSE: BT) and Altice USA (NYSE:ATUS) are both large-cap utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

1.0% of BT Group shares are held by institutional investors. Comparatively, 13.2% of Altice USA shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares BT Group and Altice USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BT Group 7.14% 39.24% 6.77%
Altice USA N/A N/A N/A

Dividends

BT Group pays an annual dividend of $0.95 per share and has a dividend yield of 5.3%. Altice USA does not pay a dividend. BT Group pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BT Group has increased its dividend for 5 consecutive years.

Valuation & Earnings

This table compares BT Group and Altice USA’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BT Group $31.47 billion 1.14 $2.49 billion $1.04 17.39
Altice USA N/A N/A N/A N/A N/A

BT Group has higher revenue and earnings than Altice USA.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BT Group and Altice USA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BT Group 3 9 5 0 2.12
Altice USA 0 5 9 0 2.64

BT Group presently has a consensus price target of $333.33, indicating a potential upside of 1,742.64%. Altice USA has a consensus price target of $31.71, indicating a potential upside of 66.48%. Given BT Group’s higher possible upside, research analysts plainly believe BT Group is more favorable than Altice USA.

Summary

BT Group beats Altice USA on 7 of the 11 factors compared between the two stocks.

BT Group Company Profile

BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as managed networked information technology (IT) solutions and cyber security protection. Its segments include Consumer, which provides fixed-voice, broadband, TV and mobile services; EE, which is a mobile network operator in the United Kingdom and provides mobile and fixed communications services to consumers; Business and Public Sector, which provides communications and IT services to businesses and the public sector in the United Kingdom and the Republic of Ireland (RoI) ;Global Services, which provides managed networked IT services to corporate customers; Wholesale and Ventures, which provides fixed and mobile services to communications providers (CPs); and Openreach, which provides copper and fiber connections between its exchanges and homes and businesses.

Altice USA Company Profile

Altice USA, Inc. is engaged in providing broadband communications and video services in the United States. The Company’s segments include Cablevision and Cequel. Cablevision provides broadband, pay television and telephony services to residential and business customers in and around the New York metropolitan area. Cequel provides broadband, pay television and telephony services to residential and business customers in the south-central United States. It also provides services through ten states of Texas, West Virginia, Louisiana, Arkansas, North Carolina, Oklahoma, Arizona, California, Missouri and Ohio. The Company also provides Wi-Fi hotspot access content and advertising services. Broadband provides services, such as video streaming, content downloading for time-shifted video consumption and other applications delivered over OTT platforms. Pay Television provides services through cable network. Video services delivered over DSL networks.

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