 Once again, ladies and gentlemen, boys and girls and children of all ages, you are now tuned in to The Prince of Investing right here live in Hololah, Hawaii. Don't forget to hit that like, subscribe, comment, and share button. And as always, I don't have a lot of time, and I definitely, you guys and girls don't have a lot of time, so we're going to jump straight into it. So as you can see in the description box, today's topic, we're going to be describing, we're going to be breaking down AT&T stock versus Verizon stock, also where we think the industry is headed, all the other great stuff, right? So the first thing we're going to do, we're going to do a comparison of AT&T stock versus Verizon stock using fundamental analysis. Now we know there's a difference between fundamental analysis and technical analysis. Technical analysis talks about, you know, where is the stock at today, where is it going to be at tomorrow, more for your day traders, short-term traders. We're looking at long-term fundamentals, and most of the information is based off of the 2018 annual report. Of course, because 2019 annual report hasn't came out, I haven't been able to see the whole picture 2019, so all I can see is 2018's report to make it fair. So we're going to look at things like total revenue, we're going to look at things like dividends, stock of the price, cash flow, net cash flow, taxes, all that great stuff. We're going to break it down, then we're going to compare the two and see what comes out to be a better investment according to the fundamental analysis, okay? So stay tuned. So the first thing we're going to do is we're going to look at total revenue. We're going to look at the total revenue of both companies. So the first thing we're going to do is we're going to look at total revenue of AT&T, 2018 total revenue of AT&T and Verizon. So I'm going to be looking down a little bit, because I got all this stuff written out on my clipboard over the homework I've done comparing the two. So total revenue of AT&T is 171 million in 2018, but Verizon has 130 million, right? So total revenue, AT&T has a higher total revenue. That's the biggest thing I'll be concerned about a company is if you had a buddy or a friend that wanted to borrow money from you, you'd be kind of concerned about how much money they make. Well, you don't need to know exactly, but you need to know they have some form of income. If you had a buddy that didn't have a job, but asked you for $500, and it was your last $500, you probably wouldn't give it to them because you probably feel they couldn't pay you back. So one of the top things I want to know is does this person have some type of revenue coming in? So AT&T, 171 million in 2018, Verizon has 130 million, and they were both kind of going at the same pace as far as the last five years. Now I got to look at the expenses, right? Because now that you have a bunch of revenue coming in, now I got to look at the expenses of going out. That's great you're bringing in a lot of money, but I know I have friends that make 10 times more money than I make, but I will have more money than them in disposable income because I live right at or below my means. But then they live over their means. For prime example, they may make $150,000 a year, but then they have $100,000 going out in their lifestyle with, you know, they drive electric cars, maybe tomorrow they drive electric cars, the day they drive electric cars, they go on fancy trips, you know, that's them. But when their money is left over, they probably only have $50,000 a year in disposable income versus you take me, who let's say my household brings in $130,000, but I live off of $50,000, so I have about $80,000 in disposable income. So that's why it's important to see that's great you're bringing in a bunch of money, but how much money is going out once that money comes in. Because I know a lot of people who make $100,000 but have $120,000 going out every year. So anyway, and that's a deficit, something like the U.S. trade deficit, right? But anyway, so we're looking at $144,000,000 in AT&T, $107,000,000 for Verizon. Now when we look at this, you know, when you break out the money that's coming in versus the expenses in 2017, you're looking at operational income was $27,000,000 for AT&T, $23,000,000 for Verizon. So this is telling me the story of, if all the money comes in, if all the money comes out, this is what they're left with or what not, $27,000,000 for AT&T versus $23,000,000 for Verizon. Now we got to look at taxes, you know, you got to pay your taxes. After the taxes, you're looking at about $19,000,000 for AT&T, $16,000,000 for Verizon, right? Now we're looking at net income, which is about $18,000,000, because I'm trying to take out this erroneous charge. I want to go too deep into it. But it's roughly around $18,000,000 and $19,000,000 for Verizon, and not for Verizon for AT&T, $15,000,000 for Verizon. Because now that you bring the money in, you have your, so we're telling the story. First, hey, I make $100,000 a year, but I spend $80,000 in my mortgage and, you know, whatever it takes to, you know, car, gas, lights, water, all that good stuff, stuff to live. So I'm left with $20,000,000, then after I pay my taxes, this is what I'm left with. So after taxes are paid in 2018, $19,000,000 for AT&T, $15,000,000 for Verizon. So that's the balance sheet. So when I look at the balance sheet, when I look at the balance sheet of 2019 out for 2018, I'm automatically going to look at Verizon, because AT&T is in a better position than Verizon. It's bringing in more total revenue and it's netting in more money on the balance sheets when you compare the balance sheets from 2018. Now we're going to look at things like current asset. This is what we're going to look at the income statements, right? Now we're looking at current assets for AT&T, $51,000,000, current assets for Verizon, $34,000,000, right? These are the current assets. Now we're looking at the total assets for 2018, 53, $531,000,000 for AT&T, $264,000,000 for Verizon. This is all of the assets on 2018. We're still on the balance sheet here for a second. So then we got to look at their liabilities, right? We're looking at 53, $531,000,000 in assets for AT&T, liabilities, $341,000,000,000, $347,000,000. You're left with a network of about 184, shareholders' equity of 184,000,000, when you look at network total shareholders' equity. Now with Verizon, we're looking at 264,000,000 in assets. Then we're breaking down liabilities of 211,000,000, which bringing them of a network of $53,000,000. So they brought in 246, not brought in, but they had 246,000,000 in assets. This is just hard-bodied assets. Then we are looking at 211,000,000 in liabilities. So now we're looking at 53,000,000 in network in 2018. Now when we look at this, going back to what I said earlier, I made a mistake when I was talking about balance sheets at the top, that was income statements of 2018, cash flow. When we was looking at revenue, operating expenses, and after taxes, those was income statements. Then I went on down to the balance sheet to see network. So we're looking at current assets. We're looking at debt. We're looking at a debt of $176,000,000. That was a red flag that I didn't like about AT&T had growing debt of $176,000,000 versus Verizon with $113,000,000. So it said Verizon was doing a better job of managing this debt. Now we're gonna move on down to dividends. Current dividend yield. We know dividend yields can shift depending on the price of the stock. For prime example, if a company's trading for $10 and they pay a $2 dividend, that's what 20% of dividend even though that's crazy. Let's say they're paying 20% of dividend, the dividend yield would be 20%. But if the stock price continues to rise to let's say one of the $20, the dividend yield would drop down to 10%. So according to the price of the dividend, it could change. But current dividend yield for AT&T is 549, I mean, 505.49%. And the current annual dividend for Verizon is 4.14. Now we're looking at market capitalization. Market capitalization for Verizon is 246 billion. Market capital AT&T is 271 billion, right? Now we gotta look at the price of the stock. That's always important, can you afford it? Currently AT&T is $37, Verizon is $59. So we look at the P ratio, then I also looked at the EPS, which is kind of important as well. So now when we look back over, let's look at the current assets and the current liabilities. Current assets for AT&T was 51 million, the current liabilities were 38 million, right? So that roughly left, I didn't do the math on that one. So that roughly left, that's about 13 million. 13 million network, current network, right? Now this was a thing I didn't like about Verizon was a red flag, 34 million. 34 million of current assets, 64 million and current liabilities, putting it at a negative 30 in currents, right? So that's something I didn't like because current gives me a more of a, you know, what's happening right now versus the bigger picture. Now when I look at the AT&T, when I look at the phone service, we all kind of, everybody knows what Verizon AT&T does, the cell phone provider. Now, one of the things I don't like about the cell phones industry, I think the industry is in a bad space. Meaning by that is that I think the industry is going to a space of, I think the industry is going to a space where let's take me for example, I was out in Japan overseas. I don't have an international phone. When I was overseas internationally, what I used and all my friends were using was pretty much things like WhatsApp, we was using Facebook, we can call somebody directly through Facebook, we can call somebody directly through WhatsApp, you can call people through Skype, they had all type of little devices that people were using to take us with water. So when I look at this, I start to think and I start to realize of why am I paying $150, $200 a month for a family package of unlimited cell phone and data when I literally can pick up the phone and call people through any app that I want to. You know, you had FaceTime apps like Tango, all you needed was a internet. So why do we pay so much money just for, you know, a phone number? You know, when you can pretty much get a phone number from WhatsApp, if you got, if you have a wifi, you pretty much got a phone. You know, you got wifi, you can download any app, you can do anything you want to do, you can call people, all that good stuff. So when I look at that, I think that innovation will get rid of phones. We won't have cell phone providers as we once knew them. Because let's say if I had wifi access, if I had wifi access, or let's say if I paid my internet, you know, if I had all I needed was wifi access and my phone is completely fine. As long as my phone has an IP address, I should be able to get a phone number and I should be able to text because I can pretty much use Messenger. Facebook, I can text anybody. Instagram, I can text anybody. You know, YouTube, I can get on YouTube. All I need is wifi. So why am I paying 115, you know, whatever the case may be among, just for a cell phone provider? Because literally I can be in my house, turn on my wifi and pretty much use everything on my phone. I can call people through Facebook. They can call me through Facebook. I can call people through Instagram. They can call me through Instagram. I can, you know, text people through, I can DM people from Snapchat, everything. Call people through Snapchat, do Snapchat videos, Instagram videos, live, YouTube live, all of that with just wifi. So what does the cell phone provider really do? Yes, they do give you a phone number or whatever the case may be, but with the influx of apps and what we can do with apps and wifi, you know, it's just getting pretty crazy. So that's why I think that may be a problem in the road in the future. It's like cable and their streaming services. Kind of that same notion how I look at where cell phone providers are kind of, well, we'll be going. You know, cable, we pretty much, I remember back in the day, people would buy satellite TV, call some 120, $200 a month and they get all these useless channels. They only watch five, you know, crazy TV all day long and then now, look, you fast forward due to wifi, everybody's streaming for $10 a month, $20 a month and they're getting some of everything. They get in TV shows, movies, everything for $20 a month. That's what I can see happening to the, what you call it, industry, to the cell phone provider industry. I mean, not granted. I'm not a telecommunications person. I'm not in the industry. But I'm just using common sense from the consumer standpoint and looking at innovation. So I can see that happening to where cell phones are turning into, the cell phone providers are like cable, then we're gonna have these, somebody's gonna come out with something new where you're gonna be able to have a phone that says, hey, we're gonna give you a phone number, you're gonna be able to hook it up to your wifi, you're gonna get a phone, I mean, you're gonna have a phone number as long as you pay your wifi, your mobile wifi service, almost like you would do with an iPad, people are gonna be able to call you, you're gonna be able to call other people, you're gonna be able to text, you're gonna be able to text other people because we're already doing that. We're already pretty much almost there. So that's one of the things I kind of worry about the industry, especially with the younger generation, younger generations don't even call each other no more. They rather Instagram you and Snapchat you and DM you on Facebook and watch you on Bob, they rather text rather than call, right? And if they did call you, they wanna do FaceTime, they wanna do video chat. So that's the crazy thing about the world that I see and know, that I may see being a problem going forward. But back to the situation, now we gotta do our final comparison of AT&T versus Verizon and which one I think is the better value for the money that you have to pay. AT&T, we looked at total revenue, AT&T won. When we look at the cash flow, AT&T 2018 had a better, they're bringing in more money than the company, they had way more money left over than the company, they have a higher network than the company, they pay a better dividend, right? The current assets, the current liability ratio is way better. The only bad thing, I didn't like the debt and the growing debt, but their debt wasn't as bad as Verizon. 176 million in debt versus 13 million in Verizon. It's not that far off. I should have broke it down into a ratio and should have broke it down into a percentage. But I'm not that too very overly concerned with AT&T. Another thing is they've had a rising dividend for so many years. Another thing I look at backing, which probably don't mean much, I saw that Vanguard has about 8% in both companies and BlackRock has about 5% in both companies, Vanguard has about 8% in both companies. So they have both companies so they pay great dividends and things like that. When I look at my heart, my heart tells me Verizon. I have Verizon, I have Verizon for the last 12 years. The stock has outperformed AT&T is more innovative. I jumped on to Verizon right when it got the iPhone. And so that was the only thing that made AT&T relevant because it was the only one that had the iPhone. But once Verizon got the iPhone, it grew so I like my heart tells me Verizon but my fundamentals tell me AT&T. It's a greater value company based off of how much money they have managing that debt. It's the only thing I really have in question but it's a higher network and it's only $37. $37 for AT&T versus $59 for Verizon. In the latest book that I'm reading and I learned from the old school people, they tell me the price of a stock versus the value of a stock can get away from each other. Meaning that the value could be here but the price could be down, right? The value could be here, price could be here. The value could be here and the price could be here, right? But it's like a rubber band. You know, when you stretch a rubber band so far, what does it eventually do? Boom, it catches up. When the value is here but the price is here, it's like a rubber band. You know, everybody's just running to it, running to it, we see it running up and everybody thinks like, man, it must be value. But we gotta remember price is what you pay, value is what you get. So the price could be running, the value, the price is running but then over time maybe take a market crash but eventually the price of the stock catches back up the value. So I like to find something that's value is here but the price is here because I buy here and everybody looks over then eventually when people catch on, it does this, making quote unquote value investors very wealthy over a long period of time. So I kind of feel like Verizon is here and its value is up here, right? I feel like AT&T is here and its value is down here. The only people that buy AT&T are like old school people who like to purchase a stock and get that nice pretty dividend. AT&T has been around for so long. I don't even see AT&T doubling itself within the next year, but with the dividends that it pay out, it pays a lot in dividends. You know, when you look at the books, when you look at the fundamentals, fundamentally AT&T is the better value company versus Verizon. That's my overall thing. That's my, so just go back over everything we talked about. We broke down every company, we broke down revenue, current revenue, everything we broke down the fundamentals of each company. We broke down what both companies do, what they're gonna do in the future and which one of you get the better bang for your buck? With 40 bucks, AT&T is a better buy for $37 versus Verizon, which is almost a $60, right? Breaking down the fundamentals. But anyway, that's gonna conclude today's episode. I hope you got something out of that. Leave some comments below telling me what you think. You know, Prince, I think you're crazy. Hey, I think you're right. Or whatever the case may be. So because when the, you know, one last thing I wanna leave you with is hard to tell who's not wearing underwear when the tide is out. But when that tide comes back in, it's very easy to see who's not wearing underwear. In a bullish economy, it's very easy to hide a lot of things when you have cash flow coming in. But one day when the market goes down and money becomes tight, credit becomes tight, you're gonna be able to see who is in a better financial position, okay? All right. Until the next video podcast, cartoon or whatever else you see me doing crazy around the globe. Peace, be safe, I'm out and thank you.