Cogeco vs Cogeco Communications Which Outperforms?

Cogeco is a Canadian telecommunications and media company that offers a wide range of services, including cable television, internet, and telephony. Cogeco Communications, on the other hand, is a subsidiary of Cogeco that focuses solely on providing cable television and internet services. Both companies are publicly traded on the stock market, with Cogeco being the parent company and Cogeco Communications being a subsidiary. Investors interested in the telecommunications sector may consider exploring the stocks of both companies to diversify their investment portfolio.

Cogeco or Cogeco Communications?

When comparing Cogeco and Cogeco Communications, 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 Cogeco and Cogeco Communications.

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. Cogeco has a dividend yield of 7.94%, while Cogeco Communications has a dividend yield of 4.77%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cogeco reports a 5-year dividend growth of 19.03% year and a payout ratio of 38.03%. On the other hand, Cogeco Communications reports a 5-year dividend growth of 10.29% year and a payout ratio of 43.26%.

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 Cogeco P/E ratio at 5.44 and Cogeco Communications's P/E ratio at 9.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cogeco P/B ratio is 0.71 while Cogeco Communications's P/B ratio is 1.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cogeco has seen a 5-year revenue growth of 0.28%, while Cogeco Communications's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cogeco's ROE at 12.28% and Cogeco Communications's ROE at 11.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $43.80 for Cogeco and C$71.28 for Cogeco Communications. Over the past year, Cogeco's prices ranged from $33.35 to $45.88, with a yearly change of 37.57%. Cogeco Communications's prices fluctuated between C$50.78 and C$72.91, with a yearly change of 43.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.