Alta vs XP Power Which Should You Buy?

Alta and XP Power are two prominent companies in the power supply industry, both offering innovative solutions for a range of applications. Alta focuses on designing and manufacturing high-performance power supplies for demanding industries such as aerospace and defense, while XP Power caters to a broader market with a diverse portfolio of power products. Investors looking to capitalize on the growing demand for power supply solutions may consider evaluating the performance and potential growth of these two companies in their investment decisions.

Alta or XP Power?

When comparing Alta and XP Power, 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 Alta and XP Power.

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. Alta has a dividend yield of -%, while XP Power has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, XP Power reports a 5-year dividend growth of 1.55% year and a payout ratio of -23.38%.

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 Alta P/E ratio at 2.24 and XP Power's P/E ratio at -12.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alta P/B ratio is 0.16 while XP Power's P/B ratio is 1.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alta has seen a 5-year revenue growth of -0.41%, while XP Power's is 0.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alta's ROE at 7.06% and XP Power's ROE at -14.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł2.13 for Alta and $15.25 for XP Power. Over the past year, Alta's prices ranged from zł1.53 to zł3.59, with a yearly change of 134.64%. XP Power's prices fluctuated between $11.75 and $19.24, with a yearly change of 63.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.