Appen vs Altium Which Is More Favorable?

Appen and Altium are both leading companies in the technology sector, but they operate in different niches. Appen is a global leader in data annotation and machine learning services, while Altium is a software company specializing in electronic design automation. Both stocks have shown strong growth potential in recent years, with Appen benefiting from the increasing demand for AI and Altium capitalizing on the growing electronics industry. Investors looking for exposure to the technology sector may consider these two stocks for their portfolios.

Appen or Altium?

When comparing Appen and Altium, 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 Appen and Altium.

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. Appen has a dividend yield of -%, while Altium has a dividend yield of 0.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Appen reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Altium reports a 5-year dividend growth of 14.87% year and a payout ratio of 81.10%.

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 Appen P/E ratio at -4.02 and Altium's P/E ratio at 68.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Appen P/B ratio is 4.22 while Altium's P/B ratio is 18.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Appen has seen a 5-year revenue growth of -0.04%, while Altium's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Appen's ROE at -79.48% and Altium's ROE at 27.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$2.56 for Appen and A$68.30 for Altium. Over the past year, Appen's prices ranged from A$0.26 to A$2.69, with a yearly change of 934.62%. Altium's prices fluctuated between A$36.04 and A$68.33, with a yearly change of 89.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.