Metro vs AT&T Which Is a Better Investment?

Metro and AT&T are two major players in the telecommunications industry, each offering a unique set of services and products. Metro, known for its affordable prepaid plans and focus on urban markets, has steadily grown its customer base in recent years. On the other hand, AT&T is a powerhouse in the industry, providing a wide range of services including wireless, broadband, and entertainment options. Investors looking to capitalize on the telecommunications sector may find value in comparing the stocks of these two companies.

Metro or AT&T?

When comparing Metro 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 Metro 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. Metro has a dividend yield of 1.6%, while AT&T has a dividend yield of 6.22%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Metro reports a 5-year dividend growth of 9.90% year and a payout ratio of 31.08%. 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 Metro P/E ratio at 20.50 and AT&T's P/E ratio at 17.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Metro P/B ratio is 2.78 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, Metro has seen a 5-year revenue growth of 0.48%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Metro's ROE at 13.62% 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 $61.21 for Metro and $22.25 for AT&T. Over the past year, Metro's prices ranged from $49.26 to $63.93, with a yearly change of 29.78%. AT&T's prices fluctuated between $15.51 and $22.73, with a yearly change of 46.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.