CNC vs HP Which Is a Smarter Choice?

CNC and HP stocks are two popular options for investors looking to diversify their portfolios in the healthcare and technology sectors, respectively. CNC, or Centene Corporation, is a leading healthcare organization that focuses on providing services to government-sponsored healthcare programs. On the other hand, HP, or Hewlett Packard, is a well-known technology company known for its innovative products in the computing and printing industries. Both stocks offer unique opportunities for growth and potential returns for investors seeking exposure to different sectors of the market.

CNC or HP?

When comparing CNC and HP, 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 CNC and HP.

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. CNC has a dividend yield of -%, while HP has a dividend yield of 3.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CNC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%.

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 CNC P/E ratio at -256.97 and HP's P/E ratio at 12.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CNC P/B ratio is -8.01 while HP's P/B ratio is 11.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CNC has seen a 5-year revenue growth of 143.36%, while HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CNC's ROE at 3.15% and HP's ROE at -1122.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.80 for CNC and $35.90 for HP. Over the past year, CNC's prices ranged from HK$0.34 to HK$2.10, with a yearly change of 526.87%. HP's prices fluctuated between $27.43 and $39.80, with a yearly change of 45.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.