Cramer's 'Mad Money' Recap: Time Warner's Time to Shine

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As most people don't know what they're doing when they buy stocks, Jim Cramer went back to the basics on his "Mad Money" TV show Wednesday.

Cramer took a look at two types of non-speculative companies -- growth and value -- and provided four "common names in business": Verizon (VZ Quote), AT&T (T Quote), Time Warner (TWX Quote) and Comcast (CMCSA Quote).

He picked household names because he wants people to understand what value and growth are and be able to refer to these names.

Verizon and AT&T, which "preserve capital" and pay big dividends, are two examples of value stocks, Cramer said. Although both stocks have paid dividends for a long time, they have not been able to grow.

If market players are looking for capital appreciation, Cramer said they should go buy a bond, as even value stocks "aren't a sure thing," but they have an upside because of their dividends.

Both Verizon and AT&T are trying to grow, and he said he believes they should do "decently." The two stocks have enough yield to prevent them from having too much of a downside, and the yield also acts as a "bodyguard" when it comes to the stock's share price, Cramer said.

"They are not defined by their growth."

But at the same time, Cramer said he can't recommend both because if people own both, they will not be diversified. He believes the winner out of the two is AT&T because it has more money and excess cash to give its shareholders.