EPI vs SBS Which Is More Reliable?

When comparing EPI (exchange-traded product) and SBS (stock-based security) stocks, investors must consider various factors including liquidity, volatility, and risk exposure. EPI stocks represent a basket of securities tracking a specific index, providing diversification benefits and potentially lower fees. SBS stocks, on the other hand, are individual equity shares that are subject to market fluctuations and company-specific risks. Understanding the differences between these two types of investments is crucial for investors looking to build a balanced portfolio tailored to their risk tolerance and investment goals.

EPI or SBS?

When comparing EPI and SBS, 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 SBS.

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 SBS has a dividend yield of 2.72%. 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, SBS reports a 5-year dividend growth of 24.19% 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 EPI P/E ratio at 13.92 and SBS's P/E ratio at 11.42. 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 0.30 while SBS's P/B ratio is 1.13.

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 SBS's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EPI's ROE at 2.16% and SBS's ROE at 10.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.02 for EPI and ¥2388.00 for SBS. Over the past year, EPI's prices ranged from HK$0.02 to HK$0.04, with a yearly change of 116.67%. SBS's prices fluctuated between ¥2173.00 and ¥2833.00, with a yearly change of 30.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.