BP vs BT Which Is More Profitable?

BP plc and BT Group plc are two major players in the UK stock market, with both companies holding significant weight in their respective industries. BP is an international oil and gas company, while BT is a telecommunications giant. Both stocks have their own unique set of risks and rewards for investors to consider. BP has been impacted by fluctuations in oil prices and environmental concerns, while BT faces competition in the rapidly evolving telecommunications sector. Investors looking to diversify their portfolios may consider the potential benefits of owning both BP and BT stocks.

BP or BT?

When comparing BP and BT, 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 BP and BT.

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. BP has a dividend yield of 7.94%, while BT has a dividend yield of 5.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BP reports a 5-year dividend growth of -7.33% year and a payout ratio of 182.37%. On the other hand, BT reports a 5-year dividend growth of -13.50% year and a payout ratio of 88.77%.

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 BP P/E ratio at 29.02 and BT's P/E ratio at 16.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BP P/B ratio is 1.21 while BT's P/B ratio is 1.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BP has seen a 5-year revenue growth of -0.19%, while BT's is -0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BP's ROE at 3.99% and BT's ROE at 6.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.73 for BP and $1.81 for BT. Over the past year, BP's prices ranged from $28.73 to $40.40, with a yearly change of 40.60%. BT's prices fluctuated between $1.25 and $2.01, with a yearly change of 60.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.