Proximus vs Orange Which Is a Smarter Choice?

Proximus and Orange are two major telecommunications companies in Belgium, both offering a range of services including mobile, internet, and TV. Investors interested in the telecommunications industry may choose to compare the stocks of these two companies to determine which may be a better investment opportunity. Proximus has a strong presence in the market and a history of consistent performance, while Orange has been expanding its offerings and market share in recent years. Understanding the strengths and weaknesses of both companies can help investors make informed decisions about their portfolio.

Proximus or Orange?

When comparing Proximus and Orange, 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 Proximus and Orange.

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. Proximus has a dividend yield of 14.5%, while Orange has a dividend yield of 4.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Proximus reports a 5-year dividend growth of 0.69% year and a payout ratio of 83.59%. On the other hand, Orange reports a 5-year dividend growth of -1.65% year and a payout ratio of 76.46%.

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 Proximus P/E ratio at 3.48 and Orange's P/E ratio at 8.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Proximus P/B ratio is 0.45 while Orange's P/B ratio is 1.07.

Growth Investors:

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

Retail Investors:

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