Ooma vs AT&T Which Is More Profitable?

Ooma Inc. and AT&T Inc. are two prominent players in the telecommunications industry, with both companies offering a range of services to consumers and businesses. Ooma is known for its high-quality VoIP phone service and innovative home communication products, while AT&T is a well-established telecommunications giant with a diverse portfolio of services including wireless, broadband, and entertainment offerings. Investors looking to add telecommunications stocks to their portfolio may find value in comparing the performance and growth potential of Ooma and AT&T.

Ooma or AT&T?

When comparing Ooma 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 Ooma 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. Ooma has a dividend yield of -%, 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. Ooma reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Ooma P/E ratio at -40.46 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. Ooma P/B ratio is 4.70 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, Ooma has seen a 5-year revenue growth of 0.43%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ooma's ROE at -11.97% 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 $14.53 for Ooma and $23.26 for AT&T. Over the past year, Ooma's prices ranged from $6.50 to $17.00, with a yearly change of 161.54%. 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.