Akzo Nobel vs Asian Paints Which Offers More Value?

Akzo Nobel and Asian Paints are two leading companies in the global paint and coatings industry, with Akzo Nobel being a Dutch multinational corporation and Asian Paints being an Indian multinational corporation. Both companies have a strong presence in the market and have experienced significant growth over the years. Investors looking to invest in the paint and coatings sector may consider comparing the performance of Akzo Nobel and Asian Paints stocks to make informed investment decisions.

Akzo Nobel or Asian Paints?

When comparing Akzo Nobel and Asian Paints, 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 Akzo Nobel and Asian Paints.

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. Akzo Nobel has a dividend yield of 3.35%, while Asian Paints has a dividend yield of 1.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Akzo Nobel reports a 5-year dividend growth of -7.47% year and a payout ratio of 64.41%. On the other hand, Asian Paints reports a 5-year dividend growth of 24.29% 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 Akzo Nobel P/E ratio at 16.88 and Asian Paints's P/E ratio at 52.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Akzo Nobel P/B ratio is 2.12 while Asian Paints's P/B ratio is 13.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Akzo Nobel has seen a 5-year revenue growth of 3.63%, while Asian Paints's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Akzo Nobel's ROE at 12.66% and Asian Paints's ROE at 24.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.49 for Akzo Nobel and ₹2466.20 for Asian Paints. Over the past year, Akzo Nobel's prices ranged from $19.40 to $27.99, with a yearly change of 44.28%. Asian Paints's prices fluctuated between ₹2451.10 and ₹3422.95, with a yearly change of 39.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.