Founder vs Investor Which Outperforms?

Founder and investor stocks refer to the different types of shares that individuals can own in a company. Founder stocks are typically held by the individuals who started the company, while investor stocks are owned by external investors who provide capital to help grow the business. While founder stocks may have more voting rights and control over the direction of the company, investor stocks often come with a financial stake and potential for profit through dividends or stock price appreciation. Understanding the differences between founder and investor stocks is crucial for both entrepreneurs and investors looking to participate in the stock market.

Founder or Investor?

When comparing Founder and Investor, 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 Founder and Investor.

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. Founder has a dividend yield of -%, while Investor has a dividend yield of 0.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Founder reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Investor reports a 5-year dividend growth of -42.14% year and a payout ratio of 7.02%.

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 Founder P/E ratio at 10.80 and Investor's P/E ratio at 4.54. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Founder P/B ratio is 0.81 while Investor's P/B ratio is 1.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Founder has seen a 5-year revenue growth of -0.07%, while Investor's is 3.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Founder's ROE at 7.51% and Investor's ROE at 25.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.74 for Founder and $27.70 for Investor. Over the past year, Founder's prices ranged from HK$0.31 to HK$0.95, with a yearly change of 206.45%. Investor's prices fluctuated between $21.49 and $31.10, with a yearly change of 44.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.