Elan vs Compass Which Is a Better Investment?

Elan Corporation and Compass Group are two well-known companies in the investment world, each with its own unique strengths and weaknesses. Elan is a pharmaceutical company known for its research and development of innovative drugs, while Compass Group is a leading provider of food services and support services. Investors looking to make a decision between these two stocks must carefully consider factors such as market trends, financial performance, and growth potential. This analysis will help determine which of these stocks is the better investment option for their portfolio.

Elan or Compass?

When comparing Elan and Compass, 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 Elan and Compass.

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. Elan has a dividend yield of 1.7%, while Compass has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Elan reports a 5-year dividend growth of -1.47% year and a payout ratio of 0.00%. On the other hand, Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%.

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 Elan P/E ratio at 18.61 and Compass's P/E ratio at -18.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Elan P/B ratio is 3.89 while Compass's P/B ratio is 8.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Elan has seen a 5-year revenue growth of 1.22%, while Compass's is 3.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Elan's ROE at 21.94% and Compass's ROE at -49.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥748.00 for Elan and $6.93 for Compass. Over the past year, Elan's prices ranged from ¥666.00 to ¥1127.00, with a yearly change of 69.22%. Compass's prices fluctuated between $2.57 and $7.69, with a yearly change of 199.22%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.