Aurora vs Alchemist Which Is Stronger?

Aurora Cannabis and The Alchemist stocks represent two unique opportunities for investors in the cannabis industry. Aurora, a leading Canadian cannabis company, has shown promising growth and expansion potential in recent years despite facing challenges in a competitive market. On the other hand, Alchemist, a newer player in the industry, offers a more speculative investment with higher risks but potentially higher rewards. Both stocks present different investment options for those looking to capitalize on the rapidly growing cannabis market.

Aurora or Alchemist?

When comparing Aurora and Alchemist, 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 Aurora and Alchemist.

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. Aurora has a dividend yield of 6.21%, while Alchemist has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 102.72%. On the other hand, Alchemist 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 Aurora P/E ratio at 14.80 and Alchemist's P/E ratio at 152.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aurora P/B ratio is 1.99 while Alchemist's P/B ratio is 0.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aurora has seen a 5-year revenue growth of -0.20%, while Alchemist's is 0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aurora's ROE at 14.00% and Alchemist's ROE at 0.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$66.00 for Aurora and ₹21.50 for Alchemist. Over the past year, Aurora's prices ranged from NT$66.00 to NT$77.00, with a yearly change of 16.67%. Alchemist's prices fluctuated between ₹4.43 and ₹21.50, with a yearly change of 385.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.