BT Group (BT) vs. Black Box (BBOX) Head-To-Head Analysis

BT Group (NYSE: BT) and Black Box (NASDAQ:BBOX) are both telecommunications services companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Dividends

BT Group pays an annual dividend of $0.95 per share and has a dividend yield of 5.3%. Black Box pays an annual dividend of $0.36 per share and has a dividend yield of 10.6%. BT Group pays out 90.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Box pays out -25.2% of its earnings in the form of a dividend. BT Group has raised its dividend for 5 consecutive years. Black Box is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

1.0% of BT Group shares are owned by institutional investors. Comparatively, 73.9% of Black Box shares are owned by institutional investors. 3.7% of Black Box shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for BT Group and Black Box, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BT Group 3 9 5 0 2.12
Black Box 0 1 0 0 2.00

BT Group presently has a consensus target price of $333.33, indicating a potential upside of 1,744.68%. Black Box has a consensus target price of $10.00, indicating a potential upside of 194.12%. Given BT Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe BT Group is more favorable than Black Box.

Risk and Volatility

BT Group has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Black Box has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
BT Group 6.52% 33.11% 6.00%
Black Box -2.69% -2.71% -0.86%

Earnings and Valuation

This table compares BT Group and Black Box’s top-line revenue, earnings per share 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 $1.05 17.21
Black Box $855.70 million 0.06 -$7.05 million ($1.43) -2.38

BT Group has higher revenue and earnings than Black Box. Black Box is trading at a lower price-to-earnings ratio than BT Group, indicating that it is currently the more affordable of the two stocks.

Summary

BT Group beats Black Box on 12 of the 16 factors compared between the two stocks.

About BT Group

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.

About Black Box

Black Box Corporation is a technology solutions provider. The Company is engaged in designing, building, managing and securing the information technology (IT) infrastructure. Offerings under the Company’s Products platform include IT infrastructure, specialty networking, multimedia and keyboard/video/mouse (KVM) switching. Offerings under its Services platform include unified communications, data infrastructure and managed services. It conducts business globally and manages its business on a geographic-service type basis consisting of four segments: North America Products, North America Services, International Products and International Services. The offerings of its Products platform are distributed through value-added resellers, direct marketing manufacturers, mass merchandisers, Web retailers and others. The offerings of its Services platform are distributed through value-added resellers, manufacturers and large system integrators, among others.

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