Era vs Parkson Berhad Which Should You Buy?

Era vs Parkson Berhad stocks represent two distinct investment opportunities in the Malaysian stock market. Era is a leading provider of integrated engineering solutions, while Parkson Berhad is a prominent retail company with a strong presence in the shopping center industry. Investors looking for exposure to the engineering sector may find Era stocks appealing, while those seeking retail exposure may opt for Parkson Berhad. Both companies offer potential for growth and profitability, making them attractive options for investors seeking diversified portfolios.

Era or Parkson Berhad?

When comparing Era and Parkson Berhad, 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 Era and Parkson Berhad.

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. Era has a dividend yield of 1.95%, while Parkson Berhad has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Era reports a 5-year dividend growth of -14.33% year and a payout ratio of 54.54%. On the other hand, Parkson Berhad 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 Era P/E ratio at 26.67 and Parkson Berhad's P/E ratio at -6.04. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Era P/B ratio is 1.15 while Parkson Berhad's P/B ratio is 0.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Era has seen a 5-year revenue growth of 0.28%, while Parkson Berhad's is -0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Era's ROE at 4.31% and Parkson Berhad's ROE at -2.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥4.88 for Era and RM0.19 for Parkson Berhad. Over the past year, Era's prices ranged from ¥3.63 to ¥7.87, with a yearly change of 116.80%. Parkson Berhad's prices fluctuated between RM0.17 and RM0.32, with a yearly change of 90.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.