Coty vs Bayer Which Is a Better Investment?

Coty Inc. and Bayer AG are two well-known companies in the stock market, each with unique characteristics that set them apart from one another. Coty, a beauty and fragrance company, has seen fluctuations in its stock price due to changes in consumer trends and industry competition. On the other hand, Bayer, a multinational pharmaceutical and life sciences company, has faced challenges such as legal disputes and regulatory issues that have impacted its stock performance. Both companies offer investors opportunities for growth and potential risks to consider when investing in their stocks.

Coty or Bayer?

When comparing Coty and Bayer, 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 Coty and Bayer.

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. Coty has a dividend yield of -%, while Bayer has a dividend yield of 0.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Coty reports a 5-year dividend growth of 0.00% year and a payout ratio of 7.85%. On the other hand, Bayer reports a 5-year dividend growth of -10.74% year and a payout ratio of -13.52%.

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 Coty P/E ratio at 38.69 and Bayer's P/E ratio at -5.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Coty P/B ratio is 1.58 while Bayer's P/B ratio is 0.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Coty has seen a 5-year revenue growth of -0.48%, while Bayer's is 3.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Coty's ROE at 4.08% and Bayer's ROE at -2.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.61 for Coty and $5.23 for Bayer. Over the past year, Coty's prices ranged from $6.93 to $13.30, with a yearly change of 91.92%. Bayer's prices fluctuated between $4.94 and $9.79, with a yearly change of 98.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.