EDP - Energias de Portugal vs IPS Which Should You Buy?

EDP - Energias de Portugal is a multinational energy company headquartered in Lisbon, Portugal, with operations in electricity generation, distribution, and renewable energy. The company's stocks have shown resilience and stability, making it an attractive investment option. On the other hand, IPS stocks, representing the technology sector, have been gaining attention for their high growth potential and innovation. Investors looking to diversify their portfolios may find both EDP and IPS stocks to be promising opportunities in the current market environment.

EDP - Energias de Portugal or IPS?

When comparing EDP - Energias de Portugal and IPS, 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 EDP - Energias de Portugal and IPS.

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. EDP - Energias de Portugal has a dividend yield of 3.74%, while IPS has a dividend yield of 1.54%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EDP - Energias de Portugal reports a 5-year dividend growth of -4.14% year and a payout ratio of 1.06%. On the other hand, IPS 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 EDP - Energias de Portugal P/E ratio at 115.08 and IPS's P/E ratio at 11.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EDP - Energias de Portugal P/B ratio is 10.88 while IPS's P/B ratio is 2.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EDP - Energias de Portugal has seen a 5-year revenue growth of -0.90%, while IPS's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EDP - Energias de Portugal's ROE at 9.42% and IPS's ROE at 24.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.59 for EDP - Energias de Portugal and ¥2547.00 for IPS. Over the past year, EDP - Energias de Portugal's prices ranged from $33.59 to $51.02, with a yearly change of 51.89%. IPS's prices fluctuated between ¥1500.00 and ¥2777.00, with a yearly change of 85.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.