CSR vs CSP

Corporate social responsibility (CSR) and corporate sustainability performance (CSP) are two important factors that investors consider when evaluating potential stocks. While CSR focuses on a company's impact on society and the environment, CSP looks at a company's efforts to sustain and protect resources for future generations. Both metrics are crucial in determining a company's long-term financial success and reputation. Understanding the differences between CSR and CSP stocks can help investors make more informed decisions about where to invest their money.

CSR or CSP?

When comparing CSR and CSP, 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 CSP.

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 3.01%, while CSP has a dividend yield of 0.99%. 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, CSP reports a 5-year dividend growth of -22.88% year and a payout ratio of 33.38%.

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 CSP's P/E ratio at 42.09. 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 CSP's P/B ratio is 2.39.

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 CSP's is -0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CSR's ROE at 18.93% and CSP's ROE at 5.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$8.96 for CSR and $12.62 for CSP. Over the past year, CSR's prices ranged from A$5.05 to A$8.97, with a yearly change of 77.62%. CSP's prices fluctuated between $8.21 and $29.93, with a yearly change of 264.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.