AMP vs Vector Which Is More Attractive?

AMP and Vector stocks are two popular investment options available in the financial market. AMP, short for Australian Mutual Provident, is a leading financial services company offering a range of products such as superannuation, insurance, and investment solutions. On the other hand, Vector stocks are a type of investment in which individuals buy shares of a company's stock with the expectation of receiving a return on their investment through dividends or capital gains. Both AMP and Vector stocks offer investors opportunities for growth and wealth accumulation, but they have distinct characteristics and risks that should be considered before making an investment decision.

AMP or Vector?

When comparing AMP and Vector, 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 Vector.

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 Vector has a dividend yield of 4.0%. 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, Vector reports a 5-year dividend growth of -18.53% year and a payout ratio of 63.35%.

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 32.76 and Vector's P/E ratio at 11.54. 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 1.07 while Vector's P/B ratio is -3.23.

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 Vector's is -0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AMP's ROE at 3.19% and Vector's ROE at -26.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for AMP and $14.99 for Vector. Over the past year, AMP's prices ranged from $0.58 to $0.94, with a yearly change of 62.07%. Vector's prices fluctuated between $9.28 and $15.53, with a yearly change of 67.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.