Swisscom vs Sunrise Which Is a Better Investment?

Swisscom and Sunrise are two leading telecommunication companies in Switzerland, both listed on the Swiss stock exchange. Swisscom is the largest provider of telecommunications services in the country, offering a wide range of mobile, internet, and TV services. On the other hand, Sunrise is a challenger in the market, known for its innovative products and competitive pricing. Investors often compare the two stocks to determine which offers better growth potential and dividend yields in the highly competitive telecom sector.

Swisscom or Sunrise?

When comparing Swisscom and Sunrise, 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 Swisscom and Sunrise.

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. Swisscom has a dividend yield of 4.82%, while Sunrise has a dividend yield of 1.77%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Swisscom reports a 5-year dividend growth of -0.10% year and a payout ratio of 0.00%. On the other hand, Sunrise reports a 5-year dividend growth of 0.00% year and a payout ratio of 31.27%.

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 Swisscom P/E ratio at 15.74 and Sunrise's P/E ratio at 13.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Swisscom P/B ratio is 2.31 while Sunrise's P/B ratio is 1.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Swisscom has seen a 5-year revenue growth of -0.05%, while Sunrise's is 1.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Swisscom's ROE at 14.54% and Sunrise's ROE at 12.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.58 for Swisscom and ¥5.62 for Sunrise. Over the past year, Swisscom's prices ranged from $53.01 to $66.00, with a yearly change of 24.50%. Sunrise's prices fluctuated between ¥3.57 and ¥6.25, with a yearly change of 75.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.