TELUS vs BCE Which Is More Reliable?

TELUS and BCE are two of the largest telecommunications companies in Canada, with a significant presence in the industry. Investors often compare these two companies when considering their stocks, as both offer stable dividends and potential for growth. TELUS has a strong focus on customer service and innovation, while BCE has a wider range of services and a more diversified revenue stream. Investors should consider factors such as market trends, competition, and financial performance when comparing TELUS and BCE stocks.

TELUS or BCE?

When comparing TELUS and BCE, 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 TELUS and BCE.

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. TELUS has a dividend yield of 5.47%, while BCE has a dividend yield of 12.26%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TELUS reports a 5-year dividend growth of -7.77% year and a payout ratio of 163.92%. On the other hand, BCE reports a 5-year dividend growth of 2.75% year and a payout ratio of 1394.44%.

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 TELUS P/E ratio at 34.08 and BCE's P/E ratio at 122.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TELUS P/B ratio is 1.99 while BCE's P/B ratio is 1.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TELUS has seen a 5-year revenue growth of 0.17%, while BCE's is 0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TELUS's ROE at 5.80% and BCE's ROE at 1.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.40 for TELUS and $25.24 for BCE. Over the past year, TELUS's prices ranged from $14.40 to $18.55, with a yearly change of 28.82%. BCE's prices fluctuated between $25.24 and $41.77, with a yearly change of 65.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.