Old Mutual vs AT&T Which Is a Smarter Choice?

Old Mutual and AT&T are two well-known companies in the world of stocks and investments. Old Mutual, a financial services company based in South Africa, has a long history of providing insurance, asset management, and banking services to customers around the world. On the other hand, AT&T is a telecommunications giant in the United States, offering a wide range of services including wireless, internet, and television. Both companies have seen fluctuations in their stock prices over the years, making them interesting options for investors looking to diversify their portfolios. This comparison will delve deeper into the financial indicators and market performance of both Old Mutual and AT&T stocks to provide insights for potential investors.

Old Mutual or AT&T?

When comparing Old Mutual 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 Old Mutual 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. Old Mutual has a dividend yield of 3.5%, 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. Old Mutual reports a 5-year dividend growth of 0.00% year and a payout ratio of 52.37%. 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 Old Mutual P/E ratio at 8.22 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. Old Mutual P/B ratio is 0.06 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, Old Mutual has seen a 5-year revenue growth of 0.75%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Old Mutual's ROE at 0.66% 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 $0.72 for Old Mutual and $22.25 for AT&T. Over the past year, Old Mutual's prices ranged from $0.53 to $0.82, with a yearly change of 54.53%. 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.