Novus vs TELUS Which Is More Attractive?

Novus and TELUS are two prominent players in the telecommunications industry, each offering unique value propositions for investors. Novus, a smaller, more niche player, focuses on delivering high-speed internet and cable services to select markets in Western Canada. On the other hand, TELUS is a major national telecommunications company offering a diverse range of services including wireless, internet, TV, and home security. Both stocks have their own strengths and weaknesses, making them attractive options for investors looking to diversify their portfolios within the telecommunications sector.

Novus or TELUS?

When comparing Novus and TELUS, 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 Novus and TELUS.

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. Novus has a dividend yield of 7.22%, while TELUS has a dividend yield of 5.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Novus reports a 5-year dividend growth of 0.00% year and a payout ratio of 95.72%. On the other hand, TELUS reports a 5-year dividend growth of -9.18% year and a payout ratio of 157.30%.

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 Novus P/E ratio at 7.10 and TELUS's P/E ratio at 33.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Novus P/B ratio is 1.03 while TELUS's P/B ratio is 2.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Novus has seen a 5-year revenue growth of -0.13%, while TELUS's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Novus's ROE at 14.63% and TELUS's ROE at 6.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are R693.00 for Novus and $15.29 for TELUS. Over the past year, Novus's prices ranged from R401.00 to R809.00, with a yearly change of 101.75%. TELUS's prices fluctuated between $13.24 and $17.77, with a yearly change of 34.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.