AT&T vs TEGNA Which Should You Buy?

AT&T and TEGNA are two leading companies in the telecommunications and media industry, but they differ in their business models and strategies. AT&T is a multinational conglomerate known for its wireless services and entertainment offerings, while TEGNA focuses primarily on broadcasting and digital media services. Investors may be interested in comparing the stocks of these companies to determine which offers better growth potential and value. Factors such as market trends, financial performance, and industry outlook should be considered when evaluating the AT&T vs TEGNA stocks.

AT&T or TEGNA?

When comparing AT&T and TEGNA, 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 TEGNA.

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 TEGNA has a dividend yield of 2.64%. 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, TEGNA reports a 5-year dividend growth of 8.32% year and a payout ratio of 16.44%.

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 TEGNA's P/E ratio at 6.20. 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 TEGNA's P/B ratio is 1.06.

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 TEGNA's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AT&T's ROE at 8.72% and TEGNA's ROE at 17.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.26 for AT&T and $18.40 for TEGNA. Over the past year, AT&T's prices ranged from $15.94 to $24.03, with a yearly change of 50.75%. TEGNA's prices fluctuated between $12.35 and $19.62, with a yearly change of 58.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.