VZ vs AK Which Is a Better Investment?

VZ vs AK stocks refers to the comparison between Verizon Communications Inc. (VZ) and AK Steel Holding Corporation (AK) stocks in the financial market. While Verizon is a telecommunications giant with a stable dividend yield and resilient performance, AK Steel is a leading producer of flat-rolled carbon, stainless, and electrical steels. Investors often analyze factors such as financial performance, market trends, and industry outlook to make informed decisions on whether to invest in VZ or AK stocks.

VZ or AK?

When comparing VZ and AK, 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 VZ and AK.

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. VZ has a dividend yield of 1.57%, while AK has a dividend yield of 3.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. VZ reports a 5-year dividend growth of -16.74% year and a payout ratio of 43.64%. On the other hand, AK reports a 5-year dividend growth of -23.23% year and a payout ratio of 138.20%.

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 VZ P/E ratio at 27.87 and AK's P/E ratio at 10.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. VZ P/B ratio is 5.94 while AK's P/B ratio is 0.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, VZ has seen a 5-year revenue growth of 0.80%, while AK's is 0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with VZ's ROE at 21.69% and AK's ROE at 2.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are CHF142.20 for VZ and ₩11010.00 for AK. Over the past year, VZ's prices ranged from CHF93.80 to CHF151.00, with a yearly change of 60.98%. AK's prices fluctuated between ₩10350.00 and ₩18030.00, with a yearly change of 74.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.