GEM vs Lion Which Performs Better?

GEM and Lion stocks are two popular investment options that offer investors the opportunity to diversify their portfolios and potentially yield high returns. GEM, or Growth Enterprise Market, is a platform designed for smaller and growing companies seeking capital investment. On the other hand, Lion stocks refer to well-established companies in the market with a proven track record of success. Both options have their own set of risks and rewards, making it crucial for investors to carefully evaluate their investment goals and risk tolerance before making a decision.

GEM or Lion?

When comparing GEM and Lion, 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 Lion.

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 Lion 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, Lion 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 Lion's P/E ratio at -0.05. 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 Lion's P/B ratio is 0.01.

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 Lion's is -0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GEM's ROE at 6.73% and Lion's ROE at -24.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥7.52 for GEM and $0.19 for Lion. Over the past year, GEM's prices ranged from ¥3.95 to ¥7.84, with a yearly change of 98.48%. Lion's prices fluctuated between $0.17 and $1.55, with a yearly change of 801.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.