AMP vs Chorus Which Is Superior?

AMP and Chorus are two New Zealand-based companies that operate in the telecommunications sector. AMP is a provider of financial services, including wealth management and insurance, while Chorus is a telecommunications infrastructure company that builds and maintains networks across the country. Both companies are listed on the New Zealand stock exchange and are popular choices for investors looking to diversify their portfolios. In this article, we will compare AMP and Chorus stocks, examining their financial performance, growth prospects, and potential risks.

AMP or Chorus?

When comparing AMP and Chorus, 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 AMP and Chorus.

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. AMP has a dividend yield of 3.09%, while Chorus has a dividend yield of 5.63%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%. On the other hand, Chorus reports a 5-year dividend growth of 7.80% year and a payout ratio of -3823.08%.

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 AMP P/E ratio at 33.06 and Chorus's P/E ratio at -743.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AMP P/B ratio is 1.08 while Chorus's P/B ratio is 5.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AMP has seen a 5-year revenue growth of -0.97%, while Chorus's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and Chorus's ROE at -0.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $25.20 for Chorus. Over the past year, AMP's prices ranged from $0.62 to $0.94, with a yearly change of 51.61%. Chorus's prices fluctuated between $20.85 and $28.24, with a yearly change of 35.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.