TELUS vs Verizon Which Is More Profitable?

TELUS and Verizon are two telecommunications giants that compete in the ever-evolving industry. TELUS, a Canadian company, is known for its strong presence in the domestic market, while Verizon, a US-based company, has a larger international reach. Both companies offer a range of services, including wireless, internet, and television. When comparing their stocks, investors consider factors such as revenue growth, profitability, and market share. Understanding the differences and similarities between these two companies can help investors make informed decisions about their portfolios.

TELUS or Verizon?

When comparing TELUS 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 TELUS 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. TELUS has a dividend yield of 5.47%, while Verizon has a dividend yield of 6.32%. 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, 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 TELUS P/E ratio at 34.08 and Verizon's P/E ratio at 18.21. 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 Verizon's P/B ratio is 1.85.

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 Verizon's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TELUS's ROE at 5.80% and Verizon's ROE at 10.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.40 for TELUS and $41.81 for Verizon. Over the past year, TELUS's prices ranged from $14.40 to $18.55, with a yearly change of 28.82%. Verizon's prices fluctuated between $37.14 and $45.36, with a yearly change of 22.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.