Orange vs Proximus Which Is More Attractive?

When it comes to investing in the telecommunications sector in Europe, two major players often come to mind: Orange and Proximus. Orange, a French multinational company, has a strong presence in the market with a diverse portfolio of products and services. On the other hand, Proximus, a Belgian telecommunications company, is known for its innovative approach and commitment to customer satisfaction. Both stocks have shown strong performance in recent years, making them attractive options for investors looking to capitalize on the growing demand for telecommunications services in the region.

Orange or Proximus?

When comparing Orange and Proximus, 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 Orange and Proximus.

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. Orange has a dividend yield of 4.3%, while Proximus has a dividend yield of 14.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Orange reports a 5-year dividend growth of -1.65% year and a payout ratio of 76.46%. On the other hand, Proximus reports a 5-year dividend growth of 0.69% year and a payout ratio of 83.59%.

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 Orange P/E ratio at 8.77 and Proximus's P/E ratio at 3.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Orange P/B ratio is 1.07 while Proximus's P/B ratio is 0.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Orange has seen a 5-year revenue growth of 0.06%, while Proximus's is 4.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Orange's ROE at 11.04% and Proximus's ROE at 13.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.07 for Orange and $1.00 for Proximus. Over the past year, Orange's prices ranged from $9.82 to $12.41, with a yearly change of 26.37%. Proximus's prices fluctuated between $1.00 and $1.97, with a yearly change of 97.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.