TEGNA vs Verizon Which Is a Better Investment?

TEGNA Inc. (TGNA) and Verizon Communications Inc. (VZ) are two companies in the media and telecommunications industry that have attracted the attention of investors. TEGNA operates broadcast stations and produces digital content, while Verizon is a leading provider of wireless and internet services. Both companies have been impacted by changing consumer preferences and technological advancements in the industry. Investors are closely monitoring their stock performance to assess their growth potential and competitive positioning in the market.

TEGNA or Verizon?

When comparing TEGNA and Verizon, 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 Verizon.

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 3.23%, while Verizon has a dividend yield of 8.28%. 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 16.41%. On the other hand, Verizon reports a 5-year dividend growth of 2.02% year and a payout ratio of 114.26%.

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 6.24 and Verizon's P/E ratio at 17.42. 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 1.07 while Verizon's P/B ratio is 1.77.

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 Verizon's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TEGNA's ROE at 17.67% and Verizon's ROE at 10.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.48 for TEGNA and $40.41 for Verizon. Over the past year, TEGNA's prices ranged from $12.35 to $19.62, with a yearly change of 58.87%. Verizon's prices fluctuated between $35.41 and $45.36, with a yearly change of 28.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.