Experian vs Premium Brands Which Offers More Value?

Experian and Premium Brands are two leading companies in their respective industries. Experian is a global information services company specializing in credit reporting and data analytics, while Premium Brands is a North American specialty food manufacturing and distribution company. Both companies have seen strong growth and profitability in recent years, making them attractive investment options for those looking to diversify their portfolios. In this comparison, we will delve into the financial performance and prospects of Experian and Premium Brands stocks to help investors make informed decisions.

Experian or Premium Brands?

When comparing Experian and Premium Brands, 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 Experian and Premium Brands.

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. Experian has a dividend yield of 1.26%, while Premium Brands has a dividend yield of 4.08%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Experian reports a 5-year dividend growth of 4.14% year and a payout ratio of 37.84%. On the other hand, Premium Brands reports a 5-year dividend growth of 10.14% year and a payout ratio of 145.77%.

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 Experian P/E ratio at 23.52 and Premium Brands's P/E ratio at 36.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Experian P/B ratio is 9.14 while Premium Brands's P/B ratio is 2.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Experian has seen a 5-year revenue growth of 0.42%, while Premium Brands's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Experian's ROE at 41.06% and Premium Brands's ROE at 5.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $46.37 for Experian and C$80.25 for Premium Brands. Over the past year, Experian's prices ranged from $38.06 to $53.10, with a yearly change of 39.52%. Premium Brands's prices fluctuated between C$75.67 and C$97.28, with a yearly change of 28.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.