ALS vs ALD Which Offers More Value?

ALS and ALD are two distinct types of stocks that are often compared in the financial markets. ALS, or Amyotrophic Lateral Sclerosis, is a neurodegenerative disease that affects the motor neurons in the body, while ALD, or Adrenoleukodystrophy, is a rare genetic disorder that affects the nervous system. When it comes to investing in these stocks, ALS stocks may be more volatile due to the unpredictable nature of the disease, while ALD stocks may be more stable but with potentially limited growth potential. It is important for investors to carefully consider the risks and rewards associated with both types of stocks before making any investment decisions.

ALS or ALD?

When comparing ALS and ALD, 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 ALS and ALD.

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. ALS has a dividend yield of 2.63%, while ALD has a dividend yield of 6.85%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ALS reports a 5-year dividend growth of 11.64% year and a payout ratio of 1469.77%. On the other hand, ALD reports a 5-year dividend growth of 14.02% 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 ALS P/E ratio at 556.13 and ALD's P/E ratio at 4.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ALS P/B ratio is 6.08 while ALD's P/B ratio is 0.51.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ALS has seen a 5-year revenue growth of 0.63%, while ALD's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ALS's ROE at 0.99% and ALD's ROE at 11.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$14.83 for ALS and €6.65 for ALD. Over the past year, ALS's prices ranged from A$10.65 to A$16.04, with a yearly change of 50.61%. ALD's prices fluctuated between €5.11 and €10.77, with a yearly change of 110.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.