CS vs Ai Which Outperforms?

As artificial intelligence (AI) continues to revolutionize various industries, including finance, the debate over investing in AI stocks versus traditional computer science (CS) stocks becomes increasingly relevant. While CS stocks typically focus on software and hardware companies, AI stocks are centered around those that are leveraging AI algorithms and technology to innovate and disrupt markets. Understanding the differences and potential risks and rewards of investing in these two categories is essential for investors looking to capitalize on the rapidly evolving tech landscape.

CS or Ai?

When comparing CS and Ai, 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 CS and Ai.

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. CS has a dividend yield of 0.72%, while Ai has a dividend yield of 4.22%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CS reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.83%. On the other hand, Ai reports a 5-year dividend growth of 17.61% 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 CS P/E ratio at 3.57 and Ai's P/E ratio at 6.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CS P/B ratio is 0.25 while Ai's P/B ratio is 1.26.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CS has seen a 5-year revenue growth of 0.47%, while Ai's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CS's ROE at 7.08% and Ai's ROE at 21.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩68200.00 for CS and ¥2112.00 for Ai. Over the past year, CS's prices ranged from ₩58900.00 to ₩72300.00, with a yearly change of 22.75%. Ai's prices fluctuated between ¥2077.00 and ¥2693.00, with a yearly change of 29.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.