CAC vs NRC Which Is More Favorable?

CAC vs NRC stocks refer to two different indexes that represent the performance of stock markets in Europe. The CAC (Compagnie des Agents de Change) is a French stock market index that includes the top 40 companies listed on the Euronext Paris exchange. On the other hand, the NRC (Nordic Capital) index represents the performance of stock markets in Nordic countries. Investors often compare and analyze these indexes to make informed decisions about their investments in European markets.

CAC or NRC?

When comparing CAC and NRC, 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 CAC and NRC.

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. CAC has a dividend yield of 4.67%, while NRC has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CAC reports a 5-year dividend growth of 16.05% year and a payout ratio of 0.00%. On the other hand, NRC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 CAC P/E ratio at 11.36 and NRC's P/E ratio at -0.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CAC P/B ratio is 0.82 while NRC's P/B ratio is 0.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CAC has seen a 5-year revenue growth of 0.10%, while NRC's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CAC's ROE at 7.90% and NRC's ROE at -44.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1710.00 for CAC and kr5.08 for NRC. Over the past year, CAC's prices ranged from ¥1561.00 to ¥2038.00, with a yearly change of 30.56%. NRC's prices fluctuated between kr2.98 and kr13.60, with a yearly change of 356.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.