AB vs BSE Which Is More Profitable?

When it comes to investing in the stock market, one key decision investors face is whether to invest in AB stocks or BSE stocks. AB stocks refer to companies listed on the Alternative Board, which are typically smaller, younger companies with higher growth potential but also higher risk. On the other hand, BSE stocks are companies listed on the Bombay Stock Exchange, which are more established and stable. Understanding the differences between these two types of stocks is crucial for investors looking to diversify their portfolios and achieve their investment goals.

AB or BSE?

When comparing AB and BSE, 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 AB and BSE.

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. AB has a dividend yield of 2.1%, while BSE has a dividend yield of 0.27%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AB reports a 5-year dividend growth of 0.00% year and a payout ratio of 15.76%. On the other hand, BSE reports a 5-year dividend growth of -25.13% year and a payout ratio of 0.00%.

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 AB P/E ratio at 4.59 and BSE's P/E ratio at 90.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AB P/B ratio is 1.11 while BSE's P/B ratio is 20.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AB has seen a 5-year revenue growth of 0.00%, while BSE's is 2.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AB's ROE at 24.65% and BSE's ROE at 20.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł94.20 for AB and ₹5352.05 for BSE. Over the past year, AB's prices ranged from zł62.80 to zł108.00, with a yearly change of 71.97%. BSE's prices fluctuated between ₹1941.05 and ₹5535.70, with a yearly change of 185.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.