Bouygues vs Orange Which Is Superior?

Bouygues and Orange are two major players in the telecommunications industry in France. Bouygues is a diversified company with operations in construction, real estate, and telecommunications, while Orange is a leading telecommunications provider with a strong presence in Europe and Africa. Both companies have seen fluctuating stock prices in recent years due to evolving market conditions and regulatory challenges. Investors need to carefully analyze the financials, market performance, and growth prospects of Bouygues and Orange stocks to make informed investment decisions.

Bouygues or Orange?

When comparing Bouygues and Orange, 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 Bouygues and Orange.

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. Bouygues has a dividend yield of 5.08%, while Orange has a dividend yield of 4.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Bouygues reports a 5-year dividend growth of -2.10% year and a payout ratio of 71.73%. On the other hand, Orange reports a 5-year dividend growth of -1.65% year and a payout ratio of 76.46%.

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 Bouygues P/E ratio at 2.16 and Orange's P/E ratio at 8.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Bouygues P/B ratio is 0.18 while Orange's P/B ratio is 1.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Bouygues has seen a 5-year revenue growth of 6.75%, while Orange's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Bouygues's ROE at 8.23% and Orange's ROE at 11.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.91 for Bouygues and $11.07 for Orange. Over the past year, Bouygues's prices ranged from $5.70 to $7.33, with a yearly change of 28.53%. Orange's prices fluctuated between $9.82 and $12.41, with a yearly change of 26.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.