CSR vs CME Which Is Stronger?

Corporate social responsibility (CSR) and corporate market economy (CME) stocks are two distinct approaches to investing that reflect different priorities and values. CSR stocks are focused on companies that prioritize ethical business practices, sustainability, and social impact, while CME stocks are centered on maximizing financial returns for shareholders. Both approaches have their advantages and drawbacks, and investors must carefully consider their values and goals when deciding which type of stocks to invest in.

CSR or CME?

When comparing CSR and CME, 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 CSR and CME.

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. CSR has a dividend yield of 1.34%, while CME has a dividend yield of 4.85%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CSR reports a 5-year dividend growth of 5.72% year and a payout ratio of 72.34%. On the other hand, CME reports a 5-year dividend growth of 16.23% year and a payout ratio of 91.69%.

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 CSR P/E ratio at 18.53 and CME's P/E ratio at 23.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CSR P/B ratio is 3.37 while CME's P/B ratio is 2.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CSR has seen a 5-year revenue growth of 0.13%, while CME's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CSR's ROE at 18.93% and CME's ROE at 12.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$8.96 for CSR and $225.59 for CME. Over the past year, CSR's prices ranged from A$5.05 to A$8.97, with a yearly change of 77.62%. CME's prices fluctuated between $190.70 and $230.36, with a yearly change of 20.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.