Core vs Flex

Core vs. flex stocks refer to two distinct approaches to investing in the stock market. Core stocks are considered stable, blue-chip companies that are held for the long-term, providing steady returns and dividends. On the other hand, flex stocks are more volatile and may offer higher growth potential, but also come with increased risk. By understanding the differences between core and flex stocks, investors can create a balanced portfolio that aligns with their financial goals and risk tolerance.

Core or Flex?

When comparing Core and Flex, 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 Core and Flex.

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. Core has a dividend yield of 2.85%, while Flex has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Core reports a 5-year dividend growth of 12.47% year and a payout ratio of 0.00%. On the other hand, Flex reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Core P/E ratio at 11.74 and Flex's P/E ratio at 16.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Core P/B ratio is 1.65 while Flex's P/B ratio is 2.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Core has seen a 5-year revenue growth of 0.16%, while Flex's is 0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Core's ROE at 14.28% and Flex's ROE at 16.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1920.00 for Core and $34.30 for Flex. Over the past year, Core's prices ranged from ¥1580.00 to ¥2153.00, with a yearly change of 36.27%. Flex's prices fluctuated between $17.44 and $35.84, with a yearly change of 105.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.