TELUS vs Novus Which Is a Better Investment?

TELUS and Novus are two prominent Canadian telecommunications companies that have been crushing the stock market in recent years. TELUS is a well-established player with a strong presence in the industry, offering a wide range of services to customers across Canada. Novus, on the other hand, is a newer player on the scene but has been making waves with its innovative approach and impressive growth potential. Both companies have shown strong performance in the stock market, but which one is the better investment? Let's take a closer look at TELUS vs Novus stocks.

TELUS or Novus?

When comparing TELUS and Novus, 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 Novus.

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 Novus has a dividend yield of 0.15%. 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, Novus reports a 5-year dividend growth of 0.00% year and a payout ratio of 53.17%.

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 34.10 and Novus's P/E ratio at 9.75. 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 2.00 while Novus's P/B ratio is 1.29.

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 Novus's is -0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TELUS's ROE at 5.80% and Novus's ROE at 13.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.40 for TELUS and R650.00 for Novus. Over the past year, TELUS's prices ranged from $14.40 to $18.55, with a yearly change of 28.82%. Novus's prices fluctuated between R400.00 and R809.00, with a yearly change of 102.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.