AMP vs Lion Which Performs Better?

AMP Limited and Lion Corporation are two companies operating in the financial services sector, with AMP specializing in wealth management and insurance while Lion focuses on investment management and financial advisory services. Both companies have a strong presence in the Australian market and have experienced growth in recent years. However, there are key differences in their business models, target markets, and investment strategies. This comparison will analyze the strengths and weaknesses of AMP and Lion stocks for potential investors looking to make informed decisions.

AMP or Lion?

When comparing AMP and Lion, 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 Lion.

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 Lion 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, Lion 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 32.03 and Lion's P/E ratio at -0.05. 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 1.04 while Lion's P/B ratio is 0.01.

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 Lion's is -0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and Lion's ROE at -24.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $0.19 for Lion. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. Lion's prices fluctuated between $0.17 and $1.55, with a yearly change of 801.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.