Compass vs Discovery Which Is More Attractive?

Compass and Discovery stocks are two popular investment options in the world of finance. Compass stocks are known for their stable performance and consistent returns, making them a popular choice among conservative investors. On the other hand, Discovery stocks are characterized by their high risk-high reward nature, attracting more aggressive investors seeking potential for significant gains. Both options have their own set of advantages and disadvantages, making it important for investors to carefully evaluate their investment goals and risk tolerance before choosing between the two.

Compass or Discovery?

When comparing Compass and Discovery, 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 Compass and Discovery.

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. Compass has a dividend yield of -%, while Discovery has a dividend yield of 1.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%. On the other hand, Discovery reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.37%.

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 Compass P/E ratio at -17.69 and Discovery's P/E ratio at 18.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Compass P/B ratio is 8.17 while Discovery's P/B ratio is 2.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Compass has seen a 5-year revenue growth of 3.20%, while Discovery's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Compass's ROE at -49.85% and Discovery's ROE at 13.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.71 for Compass and R19220.00 for Discovery. Over the past year, Compass's prices ranged from $2.57 to $7.69, with a yearly change of 199.22%. Discovery's prices fluctuated between R10712.00 and R19900.00, with a yearly change of 85.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.