Concentric vs Essentra Which Is a Smarter Choice?

Concentric and Essentra are two popular stock options for investors to consider. Concentric stocks are those of companies that operate in multiple sectors or industries, offering diversification within a single investment. On the other hand, Essentra stocks are those of companies that focus on a specific industry or niche, providing potential for concentrated growth. Understanding the differences between concentric and Essentra stocks can help investors make informed decisions about their investment portfolios and risk tolerance.

Concentric or Essentra?

When comparing Concentric and Essentra, 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 Concentric and Essentra.

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. Concentric has a dividend yield of 1.85%, while Essentra has a dividend yield of 0.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Concentric reports a 5-year dividend growth of 1.30% year and a payout ratio of 55.44%. On the other hand, Essentra reports a 5-year dividend growth of 9.10% year and a payout ratio of 100.00%.

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 Concentric P/E ratio at 29.96 and Essentra's P/E ratio at 125.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Concentric P/B ratio is 3.88 while Essentra's P/B ratio is 1.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Concentric has seen a 5-year revenue growth of 0.81%, while Essentra's is -0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Concentric's ROE at 12.60% and Essentra's ROE at 1.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are kr229.00 for Concentric and £148.00 for Essentra. Over the past year, Concentric's prices ranged from kr142.20 to kr232.50, with a yearly change of 63.50%. Essentra's prices fluctuated between £125.92 and £191.80, with a yearly change of 52.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.