FAR vs MAS Which Is Superior?

The choice between investing in FAR (fast-growing, aggressive, risky) and MAS (mature, stable, safe) stocks is a common dilemma for investors seeking to balance potential returns with risk tolerance. FAR stocks typically offer high growth potential but come with increased volatility, while MAS stocks offer steadier returns but may lack the excitement of rapid growth. Understanding the differences between FAR and MAS stocks can help investors make informed decisions to best align with their financial goals and risk appetite.

FAR or MAS?

When comparing FAR and MAS, 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 FAR and MAS.

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. FAR has a dividend yield of -%, while MAS has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FAR reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, MAS reports a 5-year dividend growth of -6.44% 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 FAR P/E ratio at 0.73 and MAS's P/E ratio at 5.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FAR P/B ratio is 0.66 while MAS's P/B ratio is 0.64.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FAR has seen a 5-year revenue growth of 0.00%, while MAS's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FAR's ROE at 169.11% and MAS's ROE at 11.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.25 for FAR and R1812.00 for MAS. Over the past year, FAR's prices ranged from $0.20 to $0.37, with a yearly change of 89.45%. MAS's prices fluctuated between R1520.00 and R1921.00, with a yearly change of 26.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.