Collins vs Ridley

When it comes to investing in stocks, two names that may come to mind are Collins and Ridley. Both companies have a solid reputation in the stock market, but they have distinct differences that may appeal to different types of investors. Collins is known for its stable and consistent growth, making it a safe option for long-term investors. On the other hand, Ridley is considered a more volatile choice, attracting risk-tolerant investors looking for high potential returns. Understanding the differences between these two companies can help investors make informed decisions about where to put their money.

Collins or Ridley?

When comparing Collins and Ridley, 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 Collins and Ridley.

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. Collins has a dividend yield of 3.3%, while Ridley has a dividend yield of 3.54%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Collins reports a 5-year dividend growth of 24.57% year and a payout ratio of 64.49%. On the other hand, Ridley reports a 5-year dividend growth of 14.19% year and a payout ratio of 67.93%.

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 Collins P/E ratio at 19.56 and Ridley's P/E ratio at 20.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Collins P/B ratio is 1.10 while Ridley's P/B ratio is 2.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Collins has seen a 5-year revenue growth of 0.15%, while Ridley's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Collins's ROE at 5.83% and Ridley's ROE at 12.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$18.10 for Collins and A$2.54 for Ridley. Over the past year, Collins's prices ranged from NT$15.60 to NT$24.70, with a yearly change of 58.33%. Ridley's prices fluctuated between A$1.98 and A$2.86, with a yearly change of 44.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.