Matson vs AT&T Which Is More Promising?

Investors often compare Matson and AT&T stocks due to their differences in the industries they operate in. Matson, a shipping and logistics company, is known for its stable cash flows and consistent earnings growth. On the other hand, AT&T, a telecommunications giant, faces challenges in a highly competitive market. Both stocks have their own unique strengths and weaknesses, attracting investors with diverse risk tolerances and investment objectives. Understanding the key factors influencing these stocks can help investors make informed decisions in their investment portfolios.

Matson or AT&T?

When comparing Matson 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 Matson 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. Matson has a dividend yield of 0.9%, 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. Matson reports a 5-year dividend growth of 8.97% year and a payout ratio of 10.88%. 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 Matson P/E ratio at 11.85 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. Matson P/B ratio is 1.90 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, Matson has seen a 5-year revenue growth of 0.68%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Matson's ROE at 16.89% 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 $144.91 for Matson and $23.26 for AT&T. Over the past year, Matson's prices ranged from $100.10 to $169.12, with a yearly change of 68.95%. 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.