GEM vs AZEK Which Is More Favorable?

GEM and AZEK are two leading companies in the construction materials industry, each offering innovative products and solutions to meet the growing demand for durable and sustainable building materials. GEM specializes in synthetic diamond materials, used for a variety of industrial applications such as cutting, grinding, and drilling. On the other hand, AZEK focuses on manufacturing high-performance building products made from recycled materials, such as composite decking and railing systems. Both companies have shown strong growth potential and are worth considering for investment opportunities.

GEM or AZEK?

When comparing GEM and AZEK, 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 GEM and AZEK.

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. GEM has a dividend yield of 1.04%, while AZEK has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GEM reports a 5-year dividend growth of 13.97% year and a payout ratio of 119.03%. On the other hand, AZEK 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 GEM P/E ratio at 29.92 and AZEK's P/E ratio at 41.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GEM P/B ratio is 2.03 while AZEK's P/B ratio is 5.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GEM has seen a 5-year revenue growth of 0.66%, while AZEK's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GEM's ROE at 6.73% and AZEK's ROE at 12.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥7.52 for GEM and $47.22 for AZEK. Over the past year, GEM's prices ranged from ¥3.95 to ¥7.84, with a yearly change of 98.48%. AZEK's prices fluctuated between $28.21 and $50.78, with a yearly change of 80.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.