BASE vs Proximus Which Is Superior?

BASE and Proximus are two leading telecommunication companies in Belgium, each offering a range of services including mobile phone, internet, and television. The stocks of both companies have attracted investors looking to capitalize on the growth in the telecom sector. BASE, a subsidiary of Telenet Group, focuses on providing affordable mobile services while Proximus, formerly known as Belgacom, offers a wider range of communication options. Both stocks have their own unique strengths and challenges, making them attractive options for investors seeking exposure to the Belgian telecommunications industry.

BASE or Proximus?

When comparing BASE and Proximus, 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 BASE and Proximus.

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. BASE has a dividend yield of 3.32%, while Proximus has a dividend yield of 15.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BASE reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Proximus reports a 5-year dividend growth of 0.69% year and a payout ratio of 83.59%.

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 BASE P/E ratio at 16.23 and Proximus's P/E ratio at 4.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BASE P/B ratio is 4.45 while Proximus's P/B ratio is 0.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BASE has seen a 5-year revenue growth of 1.16%, while Proximus's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BASE's ROE at 29.58% and Proximus's ROE at 13.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3035.00 for BASE and $1.40 for Proximus. Over the past year, BASE's prices ranged from ¥2191.00 to ¥4505.00, with a yearly change of 105.61%. Proximus's prices fluctuated between $1.26 and $2.00, with a yearly change of 58.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.