AT&T vs Aflac Which Is Stronger?

AT&T and Aflac are two well-known companies in the financial market, each offering unique opportunities for investors. AT&T, a telecommunications giant, has a long-standing history of providing consistent dividend payouts to its shareholders. Aflac, on the other hand, is a major player in the insurance industry, known for its focus on supplemental insurance products. Both stocks have their own strengths and weaknesses, making them attractive options for investors looking to diversify their portfolios. Let's explore the key differences between AT&T and Aflac stocks to help you make an informed investment decision.

AT&T or Aflac?

When comparing AT&T and Aflac, 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 AT&T and Aflac.

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. AT&T has a dividend yield of 4.72%, while Aflac has a dividend yield of 1.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%. On the other hand, Aflac reports a 5-year dividend growth of 5.26% year and a payout ratio of 27.72%.

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 AT&T P/E ratio at 18.70 and Aflac's P/E ratio at 15.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AT&T P/B ratio is 1.65 while Aflac's P/B ratio is 2.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AT&T has seen a 5-year revenue growth of -0.32%, while Aflac's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AT&T's ROE at 8.72% and Aflac's ROE at 15.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.11 for AT&T and $102.80 for Aflac. Over the past year, AT&T's prices ranged from $15.94 to $24.03, with a yearly change of 50.75%. Aflac's prices fluctuated between $75.08 and $115.50, with a yearly change of 53.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.