IDT vs AT&T Which Offers More Value?

IDT Corporation and AT&T Inc. are two renowned companies in the telecommunications industry, both offering a range of services to customers worldwide. IDT, known for its innovative technology solutions, has been a key player in the market for years. On the other hand, AT&T, one of the largest telecommunications companies in the world, has a strong presence in both the consumer and business sectors. Investors often compare the stock performance of these two companies to make informed decisions about their portfolios.

IDT or AT&T?

When comparing IDT 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 IDT 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. IDT has a dividend yield of 0.3%, 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. IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.13%. 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 IDT P/E ratio at 17.05 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. IDT P/B ratio is 4.84 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, IDT has seen a 5-year revenue growth of -0.23%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IDT's ROE at 31.74% 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 $49.66 for IDT and $23.26 for AT&T. Over the past year, IDT's prices ranged from $32.08 to $58.77, with a yearly change of 83.20%. 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.