Sunrise vs Swisscom Which Is a Smarter Choice?

Sunrise and Swisscom are two prominent telecommunications companies in Switzerland that are known for their resilience and stability in the stock market. Both companies have been highly competitive in the industry, with Sunrise offering innovative services and Swisscom being a dominant player in the market. Investors often compare the performances of these two stocks to determine the best investment option. While Sunrise has shown rapid growth in recent years, Swisscom remains a reliable choice for those seeking long-term stability in their portfolio.

Sunrise or Swisscom?

When comparing Sunrise and Swisscom, 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 Sunrise and Swisscom.

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. Sunrise has a dividend yield of 1.4%, while Swisscom has a dividend yield of 4.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sunrise reports a 5-year dividend growth of 0.00% year and a payout ratio of 31.27%. On the other hand, Swisscom reports a 5-year dividend growth of -0.10% year and a payout ratio of 67.74%.

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 Sunrise P/E ratio at 17.38 and Swisscom's P/E ratio at 15.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sunrise P/B ratio is 2.10 while Swisscom's P/B ratio is 2.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sunrise has seen a 5-year revenue growth of 1.88%, while Swisscom's is 8.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sunrise's ROE at 12.50% and Swisscom's ROE at 14.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥5.71 for Sunrise and $56.50 for Swisscom. Over the past year, Sunrise's prices ranged from ¥3.57 to ¥7.14, with a yearly change of 100.00%. Swisscom's prices fluctuated between $53.01 and $66.00, with a yearly change of 24.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.