AT&T vs Voya Financial Which Is a Better Investment?

AT&T and Voya Financial are two prominent companies in the financial sector, each with its own unique strengths and challenges. AT&T, a telecommunications giant, has a long history of providing reliable services to customers around the world. On the other hand, Voya Financial specializes in retirement planning and investment management. Both companies offer investors the potential for growth and stability, but their stock performance may vary based on factors such as market conditions and industry trends. This comparison aims to analyze and evaluate the investment potential of AT&T and Voya Financial stocks.

AT&T or Voya Financial?

When comparing AT&T and Voya Financial, 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 Voya Financial.

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 4.75%, while Voya Financial has a dividend yield of 2.99%. 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, Voya Financial reports a 5-year dividend growth of 97.44% year and a payout ratio of 30.49%.

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 18.58 and Voya Financial's P/E ratio at 11.80. 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 1.64 while Voya Financial's P/B ratio is 1.73.

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 Voya Financial's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AT&T's ROE at 8.72% and Voya Financial's ROE at 16.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.36 for AT&T and $70.09 for Voya Financial. Over the past year, AT&T's prices ranged from $15.94 to $24.03, with a yearly change of 50.75%. Voya Financial's prices fluctuated between $63.11 and $84.30, with a yearly change of 33.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.