AMP vs Litium Which Is More Profitable?

AMP and Lithium stocks are two popular investment options in the market today. AMP Limited is a financial services company based in Australia, while Lithium stocks refer to companies involved in the mining and production of lithium, a key component in electric vehicle batteries. Both sectors have seen significant growth in recent years, with AMP stocks benefitting from a rebound in the financial markets and Lithium stocks rising in response to the increasing demand for electric vehicles. Investors looking to diversify their portfolios may consider exploring opportunities in both AMP and Lithium stocks.

AMP or Litium?

When comparing AMP and Litium, 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 Litium.

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 3.09%, while Litium 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, Litium 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 33.06 and Litium's P/E ratio at 175.92. 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 1.08 while Litium's P/B ratio is 1.53.

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 -0.97%, while Litium's is 0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and Litium's ROE at 0.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and kr7.56 for Litium. Over the past year, AMP's prices ranged from $0.62 to $0.94, with a yearly change of 51.61%. Litium's prices fluctuated between kr7.16 and kr11.70, with a yearly change of 63.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.