Global vs Regional Which Performs Better?

When it comes to investing in stocks, investors are often faced with the decision of whether to focus on global companies or regional ones. Global stocks offer exposure to a diverse range of industries and markets around the world, providing opportunities for growth and potential higher returns. On the other hand, regional stocks may offer more stability and familiarity with local markets. Both options have their own advantages and disadvantages, and investors must carefully consider their investment goals and risk tolerance when deciding between global and regional stocks.

Global or Regional?

When comparing Global and Regional, 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 Global and Regional.

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. Global has a dividend yield of 4.58%, while Regional has a dividend yield of 6.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Global reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Regional reports a 5-year dividend growth of 42.36% year and a payout ratio of 19.26%.

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 Global P/E ratio at 6.56 and Regional's P/E ratio at 6.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Global P/B ratio is 2.25 while Regional's P/B ratio is 1.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Global has seen a 5-year revenue growth of -0.64%, while Regional's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Global's ROE at 40.71% and Regional's ROE at 21.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥627.00 for Global and Mex$119.92 for Regional. Over the past year, Global's prices ranged from ¥361.00 to ¥717.00, with a yearly change of 98.61%. Regional's prices fluctuated between Mex$112.13 and Mex$172.16, with a yearly change of 53.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.