ARB vs Polygon Real Estate Which Should You Buy?

When it comes to investing in real estate stocks, two popular options to consider are ARB Corporation Limited and Polygon Real Estate. ARB Corporation Limited is a leading distributor of automotive parts while Polygon Real Estate focuses on developing and managing residential and commercial properties. Both companies operate in the real estate sector but with different focuses and strategies. Investors looking for exposure to diverse real estate markets may consider investing in both ARB and Polygon Real Estate stocks for a well-rounded portfolio.

ARB or Polygon Real Estate?

When comparing ARB and Polygon Real Estate, 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 ARB and Polygon Real Estate.

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. ARB has a dividend yield of 1.67%, while Polygon Real Estate has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ARB reports a 5-year dividend growth of 10.88% year and a payout ratio of 43.55%. On the other hand, Polygon Real Estate 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 ARB P/E ratio at 32.98 and Polygon Real Estate's P/E ratio at 9.70. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ARB P/B ratio is 5.16 while Polygon Real Estate's P/B ratio is 1.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ARB has seen a 5-year revenue growth of 0.53%, while Polygon Real Estate's is 0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ARB's ROE at 15.86% and Polygon Real Estate's ROE at 13.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$40.79 for ARB and ₪4140.00 for Polygon Real Estate. Over the past year, ARB's prices ranged from A$30.25 to A$48.11, with a yearly change of 59.04%. Polygon Real Estate's prices fluctuated between ₪29.60 and ₪4204.00, with a yearly change of 14102.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.