AMP vs CrowdStrike Which Is More Promising?

AMP Limited (ASX: AMP), a financial services company, currently trades at $1.89 per share. On the other hand, CrowdStrike Holdings, Inc. (NASDAQ: CRWD), a cybersecurity technology company, trades at $243.67 per share. Both companies have shown growth potential in their respective industries. While AMP has a diversified business model with a focus on wealth management and insurance, CrowdStrike specializes in cybersecurity solutions. Investors need to weigh the risk and reward of these two very different stocks before making a decision.

AMP or CrowdStrike?

When comparing AMP and CrowdStrike, 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 AMP and CrowdStrike.

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. AMP has a dividend yield of 2.98%, while CrowdStrike has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%. On the other hand, CrowdStrike 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 AMP P/E ratio at 32.46 and CrowdStrike's P/E ratio at 498.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AMP P/B ratio is 1.06 while CrowdStrike's P/B ratio is 29.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AMP has seen a 5-year revenue growth of -0.67%, while CrowdStrike's is 12.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and CrowdStrike's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $344.09 for CrowdStrike. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. CrowdStrike's prices fluctuated between $198.86 and $398.33, with a yearly change of 100.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.