Rogers Communications vs AT&T

Rogers Communications, a leading Canadian telecommunications company, and AT&T, a giant in the American telecommunications industry, are two well-known players in the global market. Both companies provide a wide range of services including wireless communication, internet, and television. While Rogers Communications has a strong presence in Canada, AT&T has a large customer base in the United States. Investors often compare the two stocks to assess their performance and potential for growth in the competitive telecommunications sector.

Rogers Communications or AT&T?

When comparing Rogers Communications 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 Rogers Communications 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. Rogers Communications has a dividend yield of 3.49%, 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. Rogers Communications reports a 5-year dividend growth of 0.01% year and a payout ratio of 94.08%. 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 Rogers Communications P/E ratio at 31.97 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. Rogers Communications P/B ratio is 2.65 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, Rogers Communications has seen a 5-year revenue growth of 0.26%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Rogers Communications's ROE at 8.25% 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 $37.99 for Rogers Communications and $21.23 for AT&T. Over the past year, Rogers Communications's prices ranged from $35.55 to $48.19, with a yearly change of 35.56%. 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.