Altium vs Appen Which Outperforms?

Altium and Appen are two leading companies in the technology sector, both with promising prospects in the stock market. Altium, a global software company, specializes in electronic design tools for engineers and is considered a strong player in the industry. On the other hand, Appen, a data annotation and collection company, is known for its AI-powered solutions. Investors interested in tech stocks may find both Altium and Appen appealing due to their innovative technology and potential for growth in a rapidly evolving industry.

Altium or Appen?

When comparing Altium and Appen, 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 Altium and Appen.

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. Altium has a dividend yield of 0.69%, while Appen has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Altium reports a 5-year dividend growth of 14.87% year and a payout ratio of 79.02%. On the other hand, Appen 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 Altium P/E ratio at 85.35 and Appen's P/E ratio at -3.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Altium P/B ratio is 18.47 while Appen's P/B ratio is 4.26.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Altium has seen a 5-year revenue growth of 0.84%, while Appen's is -0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Altium's ROE at 21.94% and Appen's ROE at -111.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$68.30 for Altium and A$2.29 for Appen. Over the past year, Altium's prices ranged from A$36.04 to A$68.33, with a yearly change of 89.59%. Appen's prices fluctuated between A$0.26 and A$2.90, with a yearly change of 1017.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.