Capita vs Capital Which Performs Better?

Capita and Capital stocks are two terms that are often confused due to their similar spellings. However, they have distinct meanings in the world of finance. Capita refers to the total amount of money invested in a company by its shareholders, while Capital stocks represent shares of ownership in a corporation. Both are crucial aspects of assessing a company's financial health and performance. Understanding the difference between Capita and Capital stocks is essential for investors looking to make informed decisions in the stock market.

Capita or Capital?

When comparing Capita and Capital, 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 Capita and Capital.

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. Capita has a dividend yield of -%, while Capital has a dividend yield of 4.53%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Capita reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Capital reports a 5-year dividend growth of 16.72% year and a payout ratio of 26.34%.

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 Capita P/E ratio at -7.00 and Capital's P/E ratio at 7.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Capita P/B ratio is 1.60 while Capital's P/B ratio is 0.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Capita has seen a 5-year revenue growth of -0.37%, while Capital's is 0.91%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Capita's ROE at -28.00% and Capital's ROE at 10.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £16.80 for Capita and £85.00 for Capital. Over the past year, Capita's prices ranged from £12.48 to £23.20, with a yearly change of 85.90%. Capital's prices fluctuated between £77.55 and £105.61, with a yearly change of 36.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.