Aurora vs NewMarket Which Is More Favorable?

Aurora Cannabis Inc. and NewMarket Corporation are two prominent companies in the stock market, each with its own unique strengths and potential for growth. Aurora is a leading producer of medical cannabis, while NewMarket specializes in specialty chemicals and additives. Investors interested in the pharmaceutical or cannabis industry may find Aurora an attractive option, while those looking for a stable, diversified investment may consider NewMarket. Understanding the dynamics of these two stocks can help investors make informed decisions in their portfolio.

Aurora or NewMarket?

When comparing Aurora and NewMarket, 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 NewMarket.

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 6.17%, while NewMarket has a dividend yield of 2.25%. 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 114.00%. On the other hand, NewMarket reports a 5-year dividend growth of 4.80% year and a payout ratio of 21.65%.

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 14.48 and NewMarket's P/E ratio at 12.05. 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 2.11 while NewMarket's P/B ratio is 3.82.

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 NewMarket's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aurora's ROE at 14.44% and NewMarket's ROE at 35.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$66.50 for Aurora and $542.12 for NewMarket. Over the past year, Aurora's prices ranged from NT$66.20 to NT$77.00, with a yearly change of 16.31%. NewMarket's prices fluctuated between $494.04 and $650.00, with a yearly change of 31.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.