ASX vs NSX Which Offers More Value?

ASX and NSX are two different stock exchanges that cater to different sets of investors. The ASX, or Australian Securities Exchange, is the main stock exchange in Australia and is known for its large and diverse range of listed companies. On the other hand, the NSX, or National Stock Exchange of Australia, is a smaller market that focuses on small to medium-sized companies. Both exchanges offer unique opportunities for investors looking to diversify their portfolios and capitalize on different market trends.

ASX or NSX?

When comparing ASX and NSX, 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 ASX and NSX.

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. ASX has a dividend yield of 3.2%, while NSX has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASX reports a 5-year dividend growth of -1.52% year and a payout ratio of 89.32%. On the other hand, NSX 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 ASX P/E ratio at 29.81 and NSX's P/E ratio at 0.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASX P/B ratio is 3.50 while NSX's P/B ratio is -12.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASX has seen a 5-year revenue growth of 0.40%, while NSX's is -0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASX's ROE at 11.85% and NSX's ROE at -104885.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $42.83 for ASX and A$0.03 for NSX. Over the past year, ASX's prices ranged from $37.08 to $46.27, with a yearly change of 24.78%. NSX's prices fluctuated between A$0.01 and A$0.04, with a yearly change of 281.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.