Metro vs Verizon Which Is More Favorable?

Metro by T-Mobile and Verizon are two major players in the telecommunications industry, each offering a range of products and services to consumers. Both companies have seen fluctuations in their stock prices over the years, with Metro by T-Mobile known for its budget-friendly options and Verizon for its reliable network and customer service. Investors may consider factors such as market trends, competition, and financial performance when deciding between Metro and Verizon stocks.

Metro or Verizon?

When comparing Metro and Verizon, 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 Verizon.

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 Verizon has a dividend yield of 8.28%. 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, Verizon reports a 5-year dividend growth of 2.02% year and a payout ratio of 114.26%.

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 Verizon's P/E ratio at 17.42. 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 Verizon's P/B ratio is 1.77.

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 Verizon's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Metro's ROE at 13.62% and Verizon's ROE at 10.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.21 for Metro and $40.41 for Verizon. Over the past year, Metro's prices ranged from $49.26 to $63.93, with a yearly change of 29.78%. Verizon's prices fluctuated between $35.41 and $45.36, with a yearly change of 28.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.