AT&T vs Comcast Which Is a Smarter Choice?

AT&T and Comcast are two major telecommunications companies that operate within the United States. Both companies provide a range of services including cable television, internet, and phone services. When comparing the stocks of AT&T and Comcast, investors should consider various factors such as financial performance, market share, and future growth opportunities. Understanding the strengths and weaknesses of each company can help investors make informed decisions about where to allocate their capital in the competitive telecommunications industry.

AT&T or Comcast?

When comparing AT&T and Comcast, 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 Comcast.

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 4.7%, while Comcast has a dividend yield of 3.06%. 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, Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%.

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 18.79 and Comcast's P/E ratio at 10.50. 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 1.66 while Comcast's P/B ratio is 1.80.

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 Comcast's is 0.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AT&T's ROE at 8.72% and Comcast's ROE at 17.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.26 for AT&T and $60.75 for Comcast. Over the past year, AT&T's prices ranged from $15.94 to $24.03, with a yearly change of 50.75%. Comcast's prices fluctuated between $53.54 and $66.80, with a yearly change of 24.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.