BCE vs TELUS Which Is More Favorable?

BCE and TELUS are two prominent Canadian telecommunications companies that have been competing in the industry for years. Both companies offer a wide range of services including wireless, internet, and television to consumers across the country. While both stocks have performed well in the past, there are key differences between the two companies that investors should consider. BCE has a larger market capitalization and a more diversified portfolio of assets, while TELUS has a reputation for strong customer service and consistent growth. Invest in BCE for stability and diversity, or TELUS for growth potential in the telecom sector.

BCE or TELUS?

When comparing BCE and TELUS, 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 BCE and TELUS.

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. BCE has a dividend yield of 9.66%, while TELUS has a dividend yield of 7.93%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BCE reports a 5-year dividend growth of 10.41% year and a payout ratio of 173.57%. On the other hand, TELUS reports a 5-year dividend growth of -7.77% year and a payout ratio of 188.32%.

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 BCE P/E ratio at 16.04 and TELUS's P/E ratio at 41.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BCE P/B ratio is 1.75 while TELUS's P/B ratio is 2.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BCE has seen a 5-year revenue growth of 0.04%, while TELUS's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BCE's ROE at 10.62% and TELUS's ROE at 4.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.51 for BCE and $15.07 for TELUS. Over the past year, BCE's prices ranged from $26.51 to $41.77, with a yearly change of 57.56%. TELUS's prices fluctuated between $14.63 and $19.14, with a yearly change of 30.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.