Comcast vs AT&T Which Is Superior?

Comcast Corporation and AT&T Inc. are two telecommunications giants that have been competing in the stock market for years. Both companies offer a variety of services including cable TV, internet, and phone services. Comcast's stock has performed well in recent years, with strong growth and consistent dividends. On the other hand, AT&T has faced challenges due to increasing competition and changing consumer preferences. Investors looking to invest in the telecommunications sector will need to carefully consider the strengths and weaknesses of each company before making a decision.

Comcast or AT&T?

When comparing Comcast 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 Comcast 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. Comcast has a dividend yield of 3.06%, 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. Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 32.74%. 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 Comcast P/E ratio at 10.50 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. Comcast P/B ratio is 1.80 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, Comcast has seen a 5-year revenue growth of 0.41%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Comcast's ROE at 17.56% 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 $60.75 for Comcast and $23.26 for AT&T. Over the past year, Comcast's prices ranged from $53.54 to $66.80, with a yearly change of 24.77%. 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.