ADT vs TELUS Which Is More Promising?

ADT Inc. and TELUS Corporation are both prominent players in the stock market, with each company offering unique investment opportunities for shareholders. ADT, a leading provider of security solutions, has seen growth in recent years as demand for home security services continues to rise. TELUS, on the other hand, is a telecommunications giant known for its strong financial performance and innovative services. Investors looking to diversify their portfolios may consider exploring the potential of both ADT and TELUS stocks for long-term growth and stability.

ADT or TELUS?

When comparing ADT and TELUS, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ADT and TELUS.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ADT has a dividend yield of 3.3%, while TELUS has a dividend yield of 7.73%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ADT reports a 5-year dividend growth of 0.00% year and a payout ratio of 18.54%. On the other hand, TELUS reports a 5-year dividend growth of -7.77% year and a payout ratio of 188.32%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ADT P/E ratio at 7.88 and TELUS's P/E ratio at 41.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ADT P/B ratio is 1.79 while TELUS's P/B ratio is 2.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ADT has seen a 5-year revenue growth of -0.11%, while TELUS's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ADT's ROE at 23.30% and TELUS's ROE at 4.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.70 for ADT and $15.59 for TELUS. Over the past year, ADT's prices ranged from $5.63 to $8.25, with a yearly change of 46.54%. TELUS's prices fluctuated between $14.63 and $19.14, with a yearly change of 30.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.