BT vs Br. Which Outperforms?

BT Group plc and British American Tobacco (BAT) Group are two well-known companies in the UK that operate in different industries. BT Group is a telecommunications company that provides a range of services including broadband, mobile, and TV, while BAT is a multinational tobacco company with a portfolio of popular cigarette brands. Both companies have seen fluctuations in their stock prices due to various factors such as market trends, regulatory changes, and global economic conditions. In this comparison, we will analyze the performance of BT and BAT stocks, their financial health, and future prospects to determine which may be a better investment opportunity.

BT or Br.?

When comparing BT and Br., 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 BT and Br..

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. BT has a dividend yield of 5.6%, while Br. has a dividend yield of 2.46%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BT reports a 5-year dividend growth of -13.50% year and a payout ratio of 88.77%. On the other hand, Br. reports a 5-year dividend growth of 14.87% year and a payout ratio of 0.00%.

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 BT P/E ratio at 16.19 and Br.'s P/E ratio at 10.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BT P/B ratio is 1.11 while Br.'s P/B ratio is 1.09.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BT has seen a 5-year revenue growth of -0.12%, while Br.'s is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BT's ROE at 6.54% and Br.'s ROE at 10.09%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.81 for BT and ¥346.00 for Br.. Over the past year, BT's prices ranged from $1.25 to $2.01, with a yearly change of 60.80%. Br.'s prices fluctuated between ¥311.00 and ¥391.00, with a yearly change of 25.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.