AMP vs Kemper

AMP Limited and Kemper Corporation are two well-known companies in the financial services industry. Both companies offer a range of services including insurance, asset management, and investment products. While AMP is based in Australia and primarily operates in the Asia-Pacific region, Kemper is based in the United States and serves clients across North America. Investors often compare the performance of these two stocks to determine which may be a better investment opportunity. In this article, we will explore the key differences between AMP and Kemper stocks and provide insights into their potential for growth and profitability.

AMP or Kemper?

When comparing AMP and Kemper, 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 Kemper.

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 3.22%, while Kemper has a dividend yield of 2.02%. 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, Kemper reports a 5-year dividend growth of 5.25% year and a payout ratio of 1100.00%.

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 29.20 and Kemper's P/E ratio at 540.74. 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 0.95 while Kemper's P/B ratio is 1.48.

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 Kemper's is 0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and Kemper's ROE at 0.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $61.26 for Kemper. Over the past year, AMP's prices ranged from $0.58 to $0.87, with a yearly change of 50.00%. Kemper's prices fluctuated between $38.52 and $65.93, with a yearly change of 71.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.