Chubb vs AT&T Which Should You Buy?

Chubb Limited (CB) and AT&T Inc. (T) are two well-known companies in the stock market with vastly different business models. Chubb is a leading provider of insurance products and operates globally, while AT&T is a telecommunications giant with a diverse range of services. Both companies have seen fluctuations in their stock prices over the years, with Chubb known for its stability and consistent dividend payouts, and AT&T facing challenges in its competitive industry. Investors looking for a reliable, dividend-paying stock may lean towards Chubb, while those seeking growth potential may opt for AT&T.

Chubb or AT&T?

When comparing Chubb 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 Chubb 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. Chubb has a dividend yield of 1.59%, while AT&T has a dividend yield of 6.22%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Chubb reports a 5-year dividend growth of 3.29% year and a payout ratio of 14.19%. 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 Chubb P/E ratio at 11.34 and AT&T's P/E ratio at 17.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Chubb P/B ratio is 1.72 while AT&T's P/B ratio is 1.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Chubb has seen a 5-year revenue growth of 0.72%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Chubb's ROE at 16.20% 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 $280.42 for Chubb and $22.25 for AT&T. Over the past year, Chubb's prices ranged from $216.26 to $302.05, with a yearly change of 39.67%. AT&T's prices fluctuated between $15.51 and $22.73, with a yearly change of 46.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.