CCR vs Nexus

CCR and Nexus stocks are two popular investment options that cater to different risk profiles and investment goals. CCR stocks, also known as consistent compounders, are stable and established companies with a strong track record of consistent growth and earnings. On the other hand, Nexus stocks are high-growth, high-risk stocks that have the potential for significant returns but also come with greater volatility. Understanding the differences between these two types of stocks can help investors make informed decisions when building their investment portfolios.

CCR or Nexus?

When comparing CCR and Nexus, 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 CCR and Nexus.

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. CCR has a dividend yield of 1.8%, while Nexus has a dividend yield of 0.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CCR reports a 5-year dividend growth of -15.38% year and a payout ratio of 61.25%. On the other hand, Nexus reports a 5-year dividend growth of 5.59% year and a payout ratio of 14.84%.

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 CCR P/E ratio at 17.60 and Nexus's P/E ratio at 36.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CCR P/B ratio is 1.89 while Nexus's P/B ratio is 3.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CCR has seen a 5-year revenue growth of 0.95%, while Nexus's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CCR's ROE at 11.06% and Nexus's ROE at 10.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are R$12.18 for CCR and €53.00 for Nexus. Over the past year, CCR's prices ranged from R$11.36 to R$14.58, with a yearly change of 28.35%. Nexus's prices fluctuated between €44.30 and €62.60, with a yearly change of 41.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.