Evergy vs Fossil Which Is a Smarter Choice?

Evergy and fossil stocks have long been pitted against each other in the investment world as investors weigh the benefits of investing in renewable energy versus traditional fossil fuels. Evergy, a leading utility company focused on clean energy, is seen as a promising bet for those looking to support sustainable practices. On the other hand, fossil stocks continue to face scrutiny due to environmental concerns and the push towards a greener economy. The ongoing debate between Evergy and fossil stocks highlights the important decisions investors must make in balancing profitability with sustainability.

Evergy or Fossil?

When comparing Evergy and Fossil, 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 Evergy and Fossil.

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. Evergy has a dividend yield of 4.16%, while Fossil has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Evergy reports a 5-year dividend growth of 7.41% year and a payout ratio of 69.24%. On the other hand, Fossil 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 Evergy P/E ratio at 16.83 and Fossil's P/E ratio at -0.88. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Evergy P/B ratio is 4.21 while Fossil's P/B ratio is 0.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Evergy has seen a 5-year revenue growth of 0.20%, while Fossil's is -0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Evergy's ROE at 10.53% and Fossil's ROE at -58.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.59 for Evergy and $1.99 for Fossil. Over the past year, Evergy's prices ranged from $48.04 to $65.47, with a yearly change of 36.28%. Fossil's prices fluctuated between $0.75 and $2.61, with a yearly change of 248.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.