Cable One vs AT&T Which Is Stronger?

Cable One and AT&T are two prominent players in the telecommunications industry, each offering a range of services to consumers. Both companies have seen fluctuations in their stock prices over recent years, with Cable One focusing primarily on cable television and internet services, while AT&T operates in a broader range of services including wireless communication and media. Investors may be drawn to Cable One's more focused business model or AT&T's diversified offerings, leading to differing opinions on which stock may be the better investment.

Cable One or AT&T?

When comparing Cable One and AT&T, 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 Cable One and AT&T.

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. Cable One has a dividend yield of 3.15%, while AT&T has a dividend yield of 4.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cable One reports a 5-year dividend growth of 9.11% year and a payout ratio of 26.61%. On the other hand, AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%.

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 Cable One P/E ratio at 8.27 and AT&T's P/E ratio at 18.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cable One P/B ratio is 1.12 while AT&T's P/B ratio is 1.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cable One has seen a 5-year revenue growth of 0.57%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cable One's ROE at 13.31% and AT&T's ROE at 8.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $362.74 for Cable One and $23.26 for AT&T. Over the past year, Cable One's prices ranged from $311.28 to $574.53, with a yearly change of 84.57%. AT&T's prices fluctuated between $15.94 and $24.03, with a yearly change of 50.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.