BSE vs Z Which Performs Better?

BSE and Z stocks are two popular equity exchanges in India that cater to different types of investors. While the BSE, also known as the Bombay Stock Exchange, is the oldest stock exchange in Asia and offers a diverse range of investment options, Z stocks are listed on the new-age exchange platform, Zerodha, which focuses on facilitating trade through technology-driven and user-friendly platforms. Both exchanges have their own unique characteristics and cater to different investment preferences and strategies.

BSE or Z?

When comparing BSE and Z, 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 Z.

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 Z has a dividend yield of -%. 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, Z reports a 5-year dividend growth of -19.60% year and a payout ratio of 32.78%.

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 93.57 and Z's P/E ratio at 51.83. 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 20.87 while Z's P/B ratio is 2.15.

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 Z's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BSE's ROE at 20.18% and Z's ROE at 4.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹5481.00 for BSE and $5.71 for Z. Over the past year, BSE's prices ranged from ₹1941.05 to ₹5717.70, with a yearly change of 194.57%. Z's prices fluctuated between $4.32 and $7.05, with a yearly change of 63.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.