Flex vs Freedom Which Should You Buy?

Flex vs Freedom stocks are two different investment strategies that offer varying levels of control and risk. Flex stocks refer to those that are actively managed by investors, allowing for more flexibility and potentially higher returns. On the other hand, Freedom stocks are passive investments that track a specific index or sector, offering less control but lower risk. Both strategies have their own advantages and disadvantages, making it important for investors to carefully consider their financial goals and risk tolerance before choosing between the two.

Flex or Freedom?

When comparing Flex and Freedom, 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 Flex and Freedom.

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. Flex has a dividend yield of -%, while Freedom has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Flex reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Freedom 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 Flex P/E ratio at 16.64 and Freedom's P/E ratio at 22.99. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Flex P/B ratio is 3.02 while Freedom's P/B ratio is 6.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Flex has seen a 5-year revenue growth of 0.39%, while Freedom's is 13.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Flex's ROE at 17.07% and Freedom's ROE at 29.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $37.99 for Flex and $129.50 for Freedom. Over the past year, Flex's prices ranged from $21.30 to $42.47, with a yearly change of 99.36%. Freedom's prices fluctuated between $64.00 and $133.92, with a yearly change of 109.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.