Globe Life vs AT&T Which Is a Better Investment?

Globe Life (GL) and AT&T are two established companies in the stock market that offer different investment opportunities for investors. Globe Life is a leading provider of life and health insurance products, while AT&T is a telecommunications giant with a diverse range of services. Both companies have demonstrated resilience in the market, with steady growth and solid financial performance. Investors looking for stability and consistent returns may prefer Globe Life, while those seeking exposure to the tech and communication sector may opt for AT&T.

Globe Life or AT&T?

When comparing Globe Life 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 Globe Life 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. Globe Life has a dividend yield of 0.66%, while AT&T has a dividend yield of 6.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Globe Life reports a 5-year dividend growth of 6.97% year and a payout ratio of 7.93%. 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 Globe Life P/E ratio at 8.78 and AT&T's P/E ratio at 17.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Globe Life P/B ratio is 2.06 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, Globe Life has seen a 5-year revenue growth of 0.50%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Globe Life's ROE at 22.49% 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 $108.16 for Globe Life and $22.22 for AT&T. Over the past year, Globe Life's prices ranged from $38.95 to $132.00, with a yearly change of 238.90%. AT&T's prices fluctuated between $15.75 and $22.73, with a yearly change of 44.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.