BSE vs AB Which Offers More Value?

BSE and AB stocks are two different types of stocks that investors can trade on the stock market. BSE stocks are listed on the Bombay Stock Exchange, which is one of the oldest stock exchanges in Asia. AB stocks, on the other hand, are stocks of companies listed on the American Stock Exchange. Both exchanges offer a range of investment opportunities, but BSE stocks tend to be more focused on Indian markets while AB stocks are centered around American markets. Investors need to carefully consider their investment goals and risk tolerance when choosing between BSE and AB stocks.

BSE or AB?

When comparing BSE and AB, 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 BSE and AB.

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. BSE has a dividend yield of 0.27%, while AB has a dividend yield of 2.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BSE reports a 5-year dividend growth of -25.13% year and a payout ratio of 0.00%. On the other hand, AB reports a 5-year dividend growth of 0.00% year and a payout ratio of 15.76%.

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 BSE P/E ratio at 92.19 and AB's P/E ratio at 4.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BSE P/B ratio is 20.56 while AB's P/B ratio is 1.09.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BSE has seen a 5-year revenue growth of 2.48%, while AB's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BSE's ROE at 20.18% and AB's ROE at 24.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹5427.05 for BSE and zł93.00 for AB. Over the past year, BSE's prices ranged from ₹1941.05 to ₹5607.95, with a yearly change of 188.91%. AB's prices fluctuated between zł62.80 and zł108.00, with a yearly change of 71.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.