TPG vs Telstra Which Is More Profitable?

TPG Telecom Limited and Telstra Corporation Limited are two major players in the telecommunications industry in Australia. TPG is a leading provider of internet and mobile services, while Telstra is the largest telecommunications company in the country. Both companies have seen fluctuations in their stock prices over the years, with TPG often viewed as a more aggressive competitor to Telstra. Investors may consider factors such as market share, revenue growth, and technological advancements when comparing the stocks of TPG and Telstra.

TPG or Telstra?

When comparing TPG and Telstra, 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 TPG and Telstra.

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. TPG has a dividend yield of 2.4%, while Telstra has a dividend yield of 2.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TPG reports a 5-year dividend growth of 0.00% year and a payout ratio of 5527.23%. On the other hand, Telstra reports a 5-year dividend growth of -9.09% year and a payout ratio of 119.44%.

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 TPG P/E ratio at 477.30 and Telstra's P/E ratio at 111.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TPG P/B ratio is 9.83 while Telstra's P/B ratio is 15.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TPG has seen a 5-year revenue growth of 0.11%, while Telstra's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TPG's ROE at 2.18% and Telstra's ROE at 13.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $68.59 for TPG and $12.75 for Telstra. Over the past year, TPG's prices ranged from $37.03 to $72.98, with a yearly change of 97.08%. Telstra's prices fluctuated between $11.19 and $13.90, with a yearly change of 24.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.