AL vs Steel Which Outperforms?

When it comes to investing in the stock market, both aluminum (AL) and steel stocks are popular choices for investors looking to diversify their portfolios. AL stocks are often seen as a more stable investment due to the consistent demand for aluminum in various industries such as automotive and aerospace. On the other hand, steel stocks can be more volatile but offer potential for high returns, especially during periods of economic growth. Understanding the dynamics of both industries and keeping abreast of market trends is crucial for successful investment in AL vs steel stocks.

AL or Steel?

When comparing AL and Steel, 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 AL and Steel.

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. AL has a dividend yield of -%, while Steel has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Steel reports a 5-year dividend growth of 0.00% 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 AL P/E ratio at -16.09 and Steel's P/E ratio at -9.40. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AL P/B ratio is -37.80 while Steel's P/B ratio is 0.40.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AL has seen a 5-year revenue growth of -0.93%, while Steel's is -0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AL's ROE at 166.45% and Steel's ROE at -4.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.57 for AL and ฿0.72 for Steel. Over the past year, AL's prices ranged from HK$0.48 to HK$0.98, with a yearly change of 104.17%. Steel's prices fluctuated between ฿0.71 and ฿1.35, with a yearly change of 90.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.