AK vs VZ Which Is More Reliable?

AK and VZ are two prominent telecommunications companies that have been competing in the stock market for years. AK, also known as AK Communications, is known for its innovative approach to technology and its strong presence in the market. On the other hand, VZ, or Verizon Communications, is a well-established company with a vast network and loyal customer base. Investors often compare these two stocks to determine which one offers better investment opportunities and growth potential in the ever-evolving telecommunications industry.

AK or VZ?

When comparing AK and VZ, 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 AK and VZ.

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. AK has a dividend yield of 3.62%, while VZ has a dividend yield of 1.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AK reports a 5-year dividend growth of -23.23% year and a payout ratio of 138.20%. On the other hand, VZ reports a 5-year dividend growth of -16.74% year and a payout ratio of 43.64%.

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 AK P/E ratio at 10.65 and VZ's P/E ratio at 27.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AK P/B ratio is 0.24 while VZ's P/B ratio is 5.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AK has seen a 5-year revenue growth of 0.20%, while VZ's is 0.80%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AK's ROE at 2.31% and VZ's ROE at 21.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩11010.00 for AK and CHF142.20 for VZ. Over the past year, AK's prices ranged from ₩10350.00 to ₩18030.00, with a yearly change of 74.20%. VZ's prices fluctuated between CHF93.80 and CHF151.00, with a yearly change of 60.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.