AMP vs IDT Which Is Superior?

AMP Limited (AMP) and IDT Corporation (IDT) are two well-known companies in the financial and telecommunications sectors, respectively. AMP is a leading Australian wealth management company that provides a range of financial products and services to clients. On the other hand, IDT is a global provider of telecommunications and payment services. Both companies have been on investors' radar as potential investment opportunities. In this comparison, we will analyze the strengths and weaknesses of AMP vs IDT stocks to help investors make informed decisions.

AMP or IDT?

When comparing AMP and IDT, 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 IDT.

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 2.98%, while IDT has a dividend yield of 0.39%. 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, IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.93%.

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 32.03 and IDT's P/E ratio at 20.21. 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 1.04 while IDT's P/B ratio is 5.29.

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 -0.67%, while IDT's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and IDT's ROE at 29.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $49.80 for IDT. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. IDT's prices fluctuated between $27.09 and $51.42, with a yearly change of 89.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.