Dover vs Aurora Which Should You Buy?

Dover Corporation and Aurora Cannabis are two companies that operate in vastly different industries. Dover is a diversified global manufacturer that specializes in industrial equipment and components, while Aurora is a Canadian cannabis producer. Both companies are publicly traded, but their stocks have experienced contrasting performance in recent years. Dover has shown steady growth and stability, while Aurora has faced volatility due to regulatory challenges and market shifts in the cannabis industry. Investors must carefully consider the risks and potential returns when evaluating these two stocks.

Dover or Aurora?

When comparing Dover and Aurora, 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 Dover and Aurora.

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. Dover has a dividend yield of 1.0%, while Aurora has a dividend yield of 6.12%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dover reports a 5-year dividend growth of 1.33% year and a payout ratio of 18.22%. On the other hand, Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 114.00%.

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 Dover P/E ratio at 18.03 and Aurora's P/E ratio at 14.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dover P/B ratio is 4.93 while Aurora's P/B ratio is 2.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dover has seen a 5-year revenue growth of 0.29%, while Aurora's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dover's ROE at 29.22% and Aurora's ROE at 14.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $202.42 for Dover and NT$67.00 for Aurora. Over the past year, Dover's prices ranged from $130.75 to $204.88, with a yearly change of 56.70%. Aurora's prices fluctuated between NT$66.20 and NT$77.00, with a yearly change of 16.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.