CSP vs CSR

CSP and CSR stocks are two business investment strategies that prioritize different aspects of corporate governance. CSP stocks, or Corporate Social Performance, focus on companies that prioritize social and environmental responsibility in addition to financial performance. On the other hand, CSR stocks, or Corporate Social Responsibility, emphasize companies that engage in philanthropic efforts and responsible business practices. Both CSP and CSR stocks offer investors the opportunity to align their values with their investment decisions while also potentially generating financial returns.

CSP or CSR?

When comparing CSP and CSR, 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 CSP and CSR.

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. CSP has a dividend yield of 1.0%, while CSR has a dividend yield of 3.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CSP reports a 5-year dividend growth of -22.88% year and a payout ratio of 33.38%. On the other hand, CSR reports a 5-year dividend growth of 5.72% year and a payout ratio of 72.34%.

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 CSP P/E ratio at 41.59 and CSR's P/E ratio at 18.53. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CSP P/B ratio is 2.37 while CSR's P/B ratio is 3.37.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CSP has seen a 5-year revenue growth of -0.61%, while CSR's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CSP's ROE at 5.79% and CSR's ROE at 18.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.22 for CSP and A$8.96 for CSR. Over the past year, CSP's prices ranged from $8.21 to $29.93, with a yearly change of 264.27%. CSR's prices fluctuated between A$5.05 and A$8.97, with a yearly change of 77.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.