TELUS vs Freedom Which Is More Promising?

TELUS and Freedom Mobile are two major players in the Canadian telecommunications industry, with each company offering a range of services to consumers across the country. TELUS, one of the largest telecom companies in Canada, has a strong track record of growth and profitability. On the other hand, Freedom Mobile, a newer entrant to the market, has been making waves with its competitive pricing and innovative offerings. Investors looking to capitalize on the telecom sector may be considering the stocks of these two companies, weighing the strengths and weaknesses of each.

TELUS or Freedom?

When comparing TELUS and Freedom, 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 Freedom.

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 5.27%, while Freedom has a dividend yield of -%. 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, Freedom reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 35.39 and Freedom's P/E ratio at 22.95. 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 2.07 while Freedom's P/B ratio is 6.20.

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 Freedom's is 13.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TELUS's ROE at 5.80% and Freedom's ROE at 29.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $15.18 for TELUS and $128.00 for Freedom. Over the past year, TELUS's prices ranged from $14.63 to $18.68, with a yearly change of 27.68%. Freedom's prices fluctuated between $64.00 and $132.07, with a yearly change of 106.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.