AMP vs REACT Which Is More Promising?

AMP Limited and REACT Group are two popular stocks in the financial services sector. Both companies have demonstrated strong performance in recent years, but they have different business models and serve different markets. AMP is a diversified financial services company operating in Australia and New Zealand, while REACT Group is a technology solutions provider for the financial industry. Investors interested in the financial sector may want to consider these two stocks for their portfolios.

AMP or REACT?

When comparing AMP and REACT, 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 REACT.

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 REACT 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, REACT 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 33.09 and REACT's P/E ratio at 70.30. 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 REACT's P/B ratio is 2.37.

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 REACT's is 79.80%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and REACT's ROE at 3.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and £86.00 for REACT. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. REACT's prices fluctuated between £60.00 and £98.00, with a yearly change of 63.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.