Acuity Brands vs Avanza Bank Which Outperforms?

Acuity Brands and Avanza Bank are two companies operating in different industries within the stock market. Acuity Brands is a leading provider of lighting fixtures and controls, catering to commercial, institutional, and residential markets. On the other hand, Avanza Bank is a digital bank offering innovative financial services to clients in Sweden and beyond. Both companies have shown impressive growth and profitability in recent years, making them attractive investment options for individuals looking to diversify their portfolio. In this comparison, we will delve into the key factors that differentiate Acuity Brands and Avanza Bank stocks.

Acuity Brands or Avanza Bank?

When comparing Acuity Brands and Avanza Bank, 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 Acuity Brands and Avanza Bank.

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. Acuity Brands has a dividend yield of 0.22%, while Avanza Bank has a dividend yield of 3.51%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Acuity Brands reports a 5-year dividend growth of 2.90% year and a payout ratio of 4.34%. On the other hand, Avanza Bank reports a 5-year dividend growth of 1.84% year and a payout ratio of 80.21%.

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 Acuity Brands P/E ratio at 19.97 and Avanza Bank's P/E ratio at 22.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Acuity Brands P/B ratio is 3.48 while Avanza Bank's P/B ratio is 8.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Acuity Brands has seen a 5-year revenue growth of 0.34%, while Avanza Bank's is 2.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Acuity Brands's ROE at 18.55% and Avanza Bank's ROE at 38.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $272.88 for Acuity Brands and kr323.10 for Avanza Bank. Over the past year, Acuity Brands's prices ranged from $217.64 to $345.30, with a yearly change of 58.66%. Avanza Bank's prices fluctuated between kr213.30 and kr348.80, with a yearly change of 63.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.