Integrated Oil and Gas vs. Telecom Services

Industry comparison

In the same way that we compared two sectors of the market (tech and healthcare), we can also drill into the more granular industries within a given sector. Let’s look at two, which for this analysis are comprised of five stocks each:

You can imagine each of these as a portfolio that you might own if you were super obsessed with oil and gas or…telecom stuff. Basically, the financials of those stocks can be thought of as one combined company. With that theoretical combined company, we can do a fundamental analysis. Here is how that looks for these two industries:

Based on year-end financial data, oil and gas has higher performing metrics than telecom services. While there are many factors to consider based on what you are looking for with your own investments, these kinds of metrics so provide a helpful cheat sheet to better understand the strengths and weaknesses of a given area for investment. It definitely gives more info than price alone, that’s for sure!