Basis vs Challenger Which Performs Better?

Basis and Challenger stocks are two distinct categories of investments that cater to different types of investors. Basis stocks are considered safe and stable, providing consistent returns over time. On the other hand, Challenger stocks are more volatile and high-risk, with the potential for significant gains but also the risk of substantial losses. Investors must carefully consider their risk tolerance and investment goals when choosing between Basis and Challenger stocks to build a diversified portfolio that aligns with their financial objectives.

Basis or Challenger?

When comparing Basis and Challenger, 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 Basis and Challenger.

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. Basis has a dividend yield of -%, while Challenger has a dividend yield of 4.27%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Basis reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Challenger reports a 5-year dividend growth of -7.53% year and a payout ratio of 114.83%.

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 Basis P/E ratio at 169.78 and Challenger's P/E ratio at 33.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Basis P/B ratio is 1.14 while Challenger's P/B ratio is 1.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Basis has seen a 5-year revenue growth of 1.08%, while Challenger's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Basis's ROE at 0.68% and Challenger's ROE at 3.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1184.00 for Basis and A$6.13 for Challenger. Over the past year, Basis's prices ranged from ¥1024.00 to ¥1684.00, with a yearly change of 64.45%. Challenger's prices fluctuated between A$5.67 and A$7.57, with a yearly change of 33.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.