Stronger Bet Than Verizon Communications Stock: RCI Delivers More
RCI is Verizon Communications’s peer in Integrated Telecommunication Services industry that has the following:
1) Lower valuation (P/OpInc) compared to Verizon Communications stock
2) But higher revenue and operating income growth
This disconnect between valuation and performance could mean that you are better off buying RCI stock vs. VZ stock
Equities are not the only thing we do. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds – likely to return more and protect you better? We have crunched the numbers.
- Verizon Communications Stock Shares $65 Bil Success With Investors
- Verizon Communications Stock To $35?
- Stronger Bet Than Verizon Communications Stock: RCI Delivers More
- Ten-Year Tally: Verizon Communications Stock Delivers $103 Bil Gain
- Verizon Communications Stock Capital Return Hits $102 Bil
- VZ Dips 5.1% In One Day, Time To Buy The Stock?
Key Metrics Compared
| Metric | VZ | RCI |
|---|---|---|
| P/OpInc* | 7.4x | 4.4x |
| LTM OpInc Growth | 2.0% | 2.4% |
| 3Y Avg OpInc Growth | -1.3% | 10.6% |
| LTM Revenue Growth | 2.5% | 2.8% |
| 3Y Avg Revenue Growth | 0.3% | 11.8% |
OpInc = Operating Income, P/OpInc = Price To Operating Income Ratio
But do these numbers tell the full story? Read Buy or Sell VZ Stock to see if Verizon Communications still has an edge that holds up under the hood. As a quick background, Verizon Communications (VZ) provides communications, technology, and entertainment services, including wireless and broadband plans, network connectivity, private cloud solutions, and virtual networking for consumers and businesses.
This is just one approach to evaluate investments. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Is The Mismatch In Stock Price Temporary
One way to check if Verizon Communications stock is expensive now versus the other tickers would be to see how these metrics compared across companies exactly a year ago. Specifically, if there has been a marked reversal in the trend for Verizon Communications in the last 12 months, then there is a chance that the current mismatch is likely to reverse. On the other hand, a persistent underperformance in revenue and operating income growth for Verizon Communications would reinforce the conclusion that the stock is expensive compared to its peers, but may not revert soon
Key Metrics Compared 1 Yr Prior
| Metric | VZ | RCI |
|---|---|---|
| P/OpInc* | 5.8x | 2.9x |
| LTM OpInc Growth | 14.3% | 7.6% |
| 3Y Avg OpInc Growth | 1.3% | 11.0% |
| LTM Revenue Growth | 2.4% | 1.9% |
| 3Y Avg Revenue Growth | 0.5% | 11.6% |
OpInc = Operating Income
Additional Metrics To Consider
| Metric | VZ | RCI |
|---|---|---|
| P/S | 1.6x | 1.0x |
| Market Cap (Current) | $ 216.2 Bil | $ 21.7 Bil |
| LTM Revenue | $ 138.19 Bil | $ 21.02 Bil |
| LTM Opinc | $ 29.26 Bil | $ 4.91 Bil |
| LTM Op Margin | 21.2% | 23.4% |
OpInc = Operating Income
Alternate buying based on valuation, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index.