Baxter International vs Alcoa

Baxter International and Alcoa are two prominent companies in the healthcare and metal industries, respectively. In terms of stocks, they both offer unique investment opportunities. Baxter International is a leading healthcare company known for its innovative medical products and services, while Alcoa is a global leader in aluminum production and manufacturing. Investors looking for stability and growth potential may be drawn to Baxter International, while those seeking exposure to the industrial sector may consider Alcoa for their portfolio.

Baxter International or Alcoa?

When comparing Baxter International and Alcoa, 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 Baxter International and Alcoa.

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. Baxter International has a dividend yield of 3.17%, while Alcoa has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Baxter International reports a 5-year dividend growth of 9.71% year and a payout ratio of 23.79%. On the other hand, Alcoa reports a 5-year dividend growth of 0.00% year and a payout ratio of -13.27%.

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 Baxter International P/E ratio at 7.55 and Alcoa's P/E ratio at -13.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Baxter International P/B ratio is 2.45 while Alcoa's P/B ratio is 1.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Baxter International has seen a 5-year revenue growth of 0.40%, while Alcoa's is -0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Baxter International's ROE at 30.64% and Alcoa's ROE at -13.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.59 for Baxter International and $41.00 for Alcoa. Over the past year, Baxter International's prices ranged from $31.32 to $44.01, with a yearly change of 40.52%. Alcoa's prices fluctuated between $23.07 and $45.48, with a yearly change of 97.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.