TEGNA vs AT&T Which Is a Better Investment?

Both TEGNA and AT&T are prominent companies in the media and communications industry, with TEGNA focusing on broadcasting and digital media, while AT&T is a leading telecommunications conglomerate. TEGNA has shown strong growth in recent years, thanks to its diverse portfolio of assets and strategic acquisitions. In contrast, AT&T has faced challenges due to increasing competition and debt burden. Investors should carefully consider the financial performance and growth potential of both companies before making investment decisions.

TEGNA or AT&T?

When comparing TEGNA 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 TEGNA 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. TEGNA has a dividend yield of 2.64%, while AT&T has a dividend yield of 4.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TEGNA reports a 5-year dividend growth of 8.32% year and a payout ratio of 16.44%. 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 TEGNA P/E ratio at 6.20 and AT&T's P/E ratio at 18.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TEGNA P/B ratio is 1.06 while AT&T'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, TEGNA has seen a 5-year revenue growth of 0.37%, while AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TEGNA's ROE at 17.65% 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 $18.40 for TEGNA and $23.26 for AT&T. Over the past year, TEGNA's prices ranged from $12.35 to $19.62, with a yearly change of 58.87%. AT&T's prices fluctuated between $15.94 and $24.03, with a yearly change of 50.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.