AUB vs NorthWestern Which Outperforms?

Both AUB (AUB Group Ltd) and Northwestern (Northwestern Corporation) are publicly traded companies in the financial services and utility sectors respectively. AUB Group Ltd is an Australian company offering insurance broking, underwriting, and risk services, while Northwestern Corporation is a US-based company providing electricity and natural gas services in the Midwest and Northwest regions. By comparing their stock performance, financial health, and market positioning, investors can better understand the potential risks and gains associated with investing in these companies.

AUB or NorthWestern?

When comparing AUB and NorthWestern, 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 AUB and NorthWestern.

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. AUB has a dividend yield of 2.46%, while NorthWestern has a dividend yield of 5.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AUB reports a 5-year dividend growth of 7.74% year and a payout ratio of 37.77%. On the other hand, NorthWestern reports a 5-year dividend growth of 3.08% year and a payout ratio of 69.66%.

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 AUB P/E ratio at 18.32 and NorthWestern's P/E ratio at 14.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AUB P/B ratio is 2.34 while NorthWestern's P/B ratio is 1.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AUB has seen a 5-year revenue growth of 0.90%, while NorthWestern's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AUB's ROE at 13.91% and NorthWestern's ROE at 8.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$31.92 for AUB and $54.32 for NorthWestern. Over the past year, AUB's prices ranged from A$26.39 to A$34.52, with a yearly change of 30.81%. NorthWestern's prices fluctuated between $46.15 and $57.48, with a yearly change of 24.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.