Primerica vs AT&T

Primerica and AT&T are two prominent companies in the financial and telecommunications industries, respectively. Both companies have been successful in their respective markets, but their stocks have shown varying levels of performance over the years. While Primerica is known for its financial services and strong growth potential, AT&T is a telecommunications giant with a long history of stable dividends. Investors looking to diversify their portfolio may consider comparing the stocks of these two companies to make an informed investment decision.

Primerica or AT&T?

When comparing Primerica 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 Primerica 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. Primerica has a dividend yield of 1.09%, while AT&T has a dividend yield of 6.45%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Primerica reports a 5-year dividend growth of 21.06% year and a payout ratio of 22.19%. On the other hand, AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 64.22%.

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 Primerica P/E ratio at 21.63 and AT&T's P/E ratio at 12.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Primerica P/B ratio is 4.52 while AT&T's P/B ratio is 1.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Primerica has seen a 5-year revenue growth of 0.81%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Primerica's ROE at 20.40% and AT&T's ROE at 12.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $277.04 for Primerica and $21.23 for AT&T. Over the past year, Primerica's prices ranged from $184.76 to $282.38, with a yearly change of 52.84%. AT&T's prices fluctuated between $14.29 and $22.34, with a yearly change of 56.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.