EPI vs CTCI Which Is More Reliable?

EPI (earnings per share impact) and CTCI (cash return on capital invested) are two key metrics used by investors to evaluate the financial performance and profitability of a company. EPI assesses the impact of earnings per share on a company's stock price, while CTCI measures the efficiency of a company's capital allocation. Understanding the differences between these two metrics can help investors make more informed decisions when analyzing and comparing stocks in the market.

EPI or CTCI?

When comparing EPI and CTCI, 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 EPI and CTCI.

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. EPI has a dividend yield of -%, while CTCI has a dividend yield of 5.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EPI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, CTCI reports a 5-year dividend growth of -10.13% year and a payout ratio of 108.67%.

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 EPI P/E ratio at 15.13 and CTCI's P/E ratio at 13.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EPI P/B ratio is 0.33 while CTCI's P/B ratio is 1.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EPI has seen a 5-year revenue growth of 0.13%, while CTCI's is 0.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EPI's ROE at 2.16% and CTCI's ROE at 12.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.03 for EPI and NT$40.55 for CTCI. Over the past year, EPI's prices ranged from HK$0.02 to HK$0.04, with a yearly change of 116.67%. CTCI's prices fluctuated between NT$40.35 and NT$55.60, with a yearly change of 37.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.