EVT vs IDT Which Outperforms?

"EVT (Expected Value of Transaction) and IDT (Intrinsic Dignity of Trade) stocks are two distinct approaches to investing in the stock market. EVT focuses on assessing the potential value of a stock transaction based on projected outcomes and probabilities, while IDT emphasizes the moral and ethical aspects of a company's business practices and its impact on society. Both approaches have their merits and drawbacks, and investors must weigh the benefits of each when making investment decisions."

EVT or IDT?

When comparing EVT and IDT, 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 EVT and IDT.

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. EVT has a dividend yield of 3.03%, while IDT has a dividend yield of 0.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EVT reports a 5-year dividend growth of -7.79% year and a payout ratio of 1143.19%. On the other hand, IDT reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.93%.

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 EVT P/E ratio at 377.96 and IDT's P/E ratio at 20.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EVT P/B ratio is 1.88 while IDT's P/B ratio is 5.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EVT has seen a 5-year revenue growth of 0.20%, while IDT's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EVT's ROE at 0.49% and IDT's ROE at 29.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$11.05 for EVT and $49.80 for IDT. Over the past year, EVT's prices ranged from A$9.51 to A$12.87, with a yearly change of 35.33%. IDT's prices fluctuated between $27.09 and $51.42, with a yearly change of 89.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.