Critical Review: Inventergy Global (INVT) and AT&T (T)

Inventergy Global (OTCMKTS: INVT) and AT&T (NYSE:T) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Earnings & Valuation

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This table compares Inventergy Global 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
Inventergy Global $1.77 million 0.40 -$7.73 million N/A N/A
AT&T $160.55 billion 1.35 $29.45 billion $3.05 11.59

AT&T has higher revenue and earnings than Inventergy Global.

Insider and Institutional Ownership

55.9% of AT&T shares are held by institutional investors. 24.6% of Inventergy Global shares are held by company insiders. Comparatively, 0.1% of AT&T shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Inventergy Global and AT&T, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inventergy Global 0 0 0 0 N/A
AT&T 0 13 11 0 2.46

AT&T has a consensus target price of $41.58, indicating a potential upside of 17.59%. Given AT&T’s higher probable upside, analysts plainly believe AT&T is more favorable than Inventergy Global.

Volatility & Risk

Inventergy Global has a beta of -0.44, indicating that its stock price is 144% less volatile than the S&P 500. Comparatively, AT&T has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Inventergy Global N/A 37.76% 23.80%
AT&T 18.34% 14.55% 4.39%

Dividends

AT&T pays an annual dividend of $2.00 per share and has a dividend yield of 5.7%. Inventergy Global does not pay a dividend. AT&T pays out 65.6% of its earnings in the form of a dividend. AT&T has raised its dividend for 33 consecutive years.

Summary

AT&T beats Inventergy Global on 10 of the 14 factors compared between the two stocks.

About Inventergy Global

Inventergy Global, Inc., an intellectual property (IP) investment and licensing company, engages in identifying, acquiring, and licensing patented technologies of various technology and small companies. The company acquires portfolios in the telecommunications industry primarily in core network infrastructure and mobile broadband communications segments. Inventergy Global, Inc. is headquartered in Campbell, California.

About AT&T

AT&T Inc. provides communications and digital entertainment services. The company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility, and International. The Business Solutions segment offers wireless services, strategic services, legacy voice, data services, wireless equipment, and other services to multinational companies, governmental and wholesale customers, and individual subscribers. The Entertainment Group segment provides video entertainment and audio programming channels to approximately 25 million subscribers; broadband and Internet services to 13.5 million residential subscribers; local and long-distance voice services to residential customers, as well as DSL Internet access; and voice services provided over IP-based technology. The Consumer Mobility segment offers postpaid and prepaid wireless voice and data communications services to consumers, and wireless wholesale and resale subscribers; consulting, advertising, and application and co-location services; and sells a variety of handsets, wirelessly enabled computers, and personal computer wireless data cards through company-owned stores, agents, or third-party retail stores, as well as accessories, such as carrying cases, hands-free devices, and other items. The International segment offers digital television services, including local and international digital video entertainment and audio programming under the DIRECTV and SKY brands throughout Latin America. This segment offers postpaid and prepaid wireless services in Mexico to approximately 15 million subscribers under the AT&T and Unefon brands; and sells a range of handsets. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was founded in 1983 and is based in Dallas, Texas.

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