CSR vs TSR Which Is More Attractive?

Corporate Social Responsibility (CSR) and Total Shareholder Return (TSR) are two important metrics used by companies to measure their performance and impact on society. CSR focuses on a company's responsibility to contribute to the well-being of society through ethical business practices, environmental sustainability, and social initiatives. On the other hand, TSR measures the financial returns generated for shareholders over a specific period. While CSR enhances a company's reputation and brand value, TSR directly impacts shareholder value and profitability. Both metrics play a crucial role in determining a company's overall success and sustainability in the long run.

CSR or TSR?

When comparing CSR and TSR, 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 TSR.

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 TSR has a dividend yield of -%. 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, TSR reports a 5-year dividend growth of 0.00% 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 CSR P/E ratio at 18.53 and TSR's P/E ratio at 15.06. 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 TSR's P/B ratio is 1.63.

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 TSR's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CSR's ROE at 18.93% and TSR's ROE at 11.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$8.96 for CSR and $13.38 for TSR. Over the past year, CSR's prices ranged from A$5.05 to A$8.97, with a yearly change of 77.62%. TSR's prices fluctuated between $6.55 and $13.40, with a yearly change of 104.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.