Clover vs NorthWestern Which Is Superior?

When it comes to investing in the stock market, there are a multitude of options available to investors. Two popular choices for investors are Clover Health Investments Corp. (CLOV) and NorthWestern Corporation (NWE). Clover Health is a health insurance provider that offers a unique approach to covering medical expenses, while NorthWestern Corporation is a utility company that provides electricity and natural gas services to customers in the Northwestern United States. In this comparison, we will explore the key differences and similarities between these two stocks to help investors make an informed decision.

Clover or NorthWestern?

When comparing Clover and NorthWestern, 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 Clover and NorthWestern.

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. Clover has a dividend yield of 1.68%, while NorthWestern has a dividend yield of 4.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Clover reports a 5-year dividend growth of -3.04% year and a payout ratio of 82.64%. On the other hand, NorthWestern reports a 5-year dividend growth of 3.08% year and a payout ratio of 69.66%.

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 Clover P/E ratio at 48.62 and NorthWestern's P/E ratio at 14.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Clover P/B ratio is 1.10 while NorthWestern's P/B ratio is 1.15.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Clover has seen a 5-year revenue growth of 0.25%, while NorthWestern's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Clover's ROE at 2.29% and NorthWestern's ROE at 8.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$0.44 for Clover and $52.26 for NorthWestern. Over the past year, Clover's prices ranged from A$0.36 to A$0.85, with a yearly change of 137.76%. NorthWestern's prices fluctuated between $46.15 and $57.49, with a yearly change of 24.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.