Best Buy vs Verizon Which Performs Better?

Best Buy and Verizon are two well-known companies in the technology and telecommunications industry, both publicly traded on the stock market. Best Buy is a leading retailer of consumer electronics, while Verizon is a telecommunications giant providing wireless services to millions of customers. Investors may be interested in comparing the two stocks to determine which offers the best potential for financial growth and stability. By analyzing factors such as revenue growth, market share, and future outlook, investors can make informed decisions on whether to invest in Best Buy or Verizon stocks.

Best Buy or Verizon?

When comparing Best Buy and Verizon, 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 Best Buy and Verizon.

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. Best Buy has a dividend yield of 4.24%, while Verizon has a dividend yield of 6.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.39%. On the other hand, Verizon reports a 5-year dividend growth of 2.02% year and a payout ratio of 114.26%.

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 Best Buy P/E ratio at 14.98 and Verizon's P/E ratio at 18.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Best Buy P/B ratio is 5.23 while Verizon's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Best Buy has seen a 5-year revenue growth of 0.47%, while Verizon's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 39.46% and Verizon's ROE at 10.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $88.10 for Best Buy and $42.02 for Verizon. Over the past year, Best Buy's prices ranged from $69.29 to $103.71, with a yearly change of 49.68%. Verizon's prices fluctuated between $36.46 and $45.36, with a yearly change of 24.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.