T-Mobile vs AT&T Which Is a Better Investment?

T-Mobile and AT&T are two telecommunications giants competing for dominance in the stock market. While both companies have their strengths and weaknesses, investors are constantly analyzing their financial performance, market share, and growth prospects to determine which stock may offer greater potential for future returns. T-Mobile's focus on innovation and customer-friendly policies has helped it gain market share, while AT&T's long-standing reputation and diverse portfolio of services have kept it a strong competitor. In this comparison, we will delve into the key factors driving the performance of T-Mobile and AT&T stocks.

T-Mobile or AT&T?

When comparing T-Mobile 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 T-Mobile 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. T-Mobile has a dividend yield of 1.09%, while AT&T has a dividend yield of 6.22%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. T-Mobile reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.24%. On the other hand, AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%.

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 T-Mobile P/E ratio at 26.81 and AT&T's P/E ratio at 17.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. T-Mobile P/B ratio is 4.33 while AT&T's P/B ratio is 1.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, T-Mobile has seen a 5-year revenue growth of 0.30%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with T-Mobile's ROE at 16.35% and AT&T's ROE at 8.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $234.85 for T-Mobile and $22.25 for AT&T. Over the past year, T-Mobile's prices ranged from $145.77 to $239.13, with a yearly change of 64.05%. AT&T's prices fluctuated between $15.51 and $22.73, with a yearly change of 46.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.