AT&T vs Unum Which Is More Reliable?

AT&T and Unum are two companies in very different industries but both are well-known names in the stock market. AT&T is a telecommunications giant, providing services to millions of customers worldwide. Unum, on the other hand, is a leading provider of disability insurance and other employee benefits. Both companies have seen their stocks fluctuate in recent years, with AT&T facing challenges in a competitive market and Unum navigating changes in the insurance industry. Investors interested in these two stocks should carefully consider their financial performance, growth potential, and market conditions.

AT&T or Unum?

When comparing AT&T and Unum, 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 Unum.

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 6.12%, while Unum has a dividend yield of 2.72%. 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, Unum reports a 5-year dividend growth of 7.24% year and a payout ratio of 16.51%.

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 18.04 and Unum's P/E ratio at 7.75. 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 1.60 while Unum's P/B ratio is 1.25.

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 Unum's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AT&T's ROE at 8.72% and Unum's ROE at 17.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.20 for AT&T and $72.46 for Unum. Over the past year, AT&T's prices ranged from $15.84 to $22.75, with a yearly change of 43.62%. Unum's prices fluctuated between $41.97 and $73.24, with a yearly change of 74.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.