Q: Hello. How would you rank these companies in terms of growth and valuation in the communication sector in the next 3 years?
How does a U.S. communication stock compare to a Canadian one?
How does a U.S. communication stock compare to a Canadian one?
5i Research Answer:
The US sector contains a lot more companies that are media-related and quite different than typical telecoms. Social media companies were added to the communications sector about two years ago. Canada does not have a good representation of these types of companies. In terms of total return, we would rank these: NFLX, BCE, T, VZ. But in terms of valuation NFLX is by far the most expensive, so if investors are looking for less volatility and dividends we would exclude that. It still very much 'acts' like a tech stock in terms of stock movements.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NFLX, VZ.