Global vs Universal Which Is a Smarter Choice?

Global and universal stocks are types of investments that provide exposure to a wide range of markets around the world. Global stocks refer to companies that operate internationally and have a presence in multiple countries, offering diversification and stability in different economic conditions. On the other hand, universal stocks go beyond geographic boundaries and invest in companies across various sectors and industries, providing a more comprehensive and inclusive approach to investing. Both types offer investors the opportunity to benefit from the growth and potential of companies on a global scale.

Global or Universal?

When comparing Global and Universal, 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 Universal.

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 4.64%, while Universal has a dividend yield of 5.7%. 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, Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%.

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 6.52 and Universal's P/E ratio at 11.54. 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 2.22 while Universal's P/B ratio is 0.99.

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 Universal's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Global's ROE at 40.71% and Universal's ROE at 8.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥624.00 for Global and $55.58 for Universal. Over the past year, Global's prices ranged from ¥361.00 to ¥717.00, with a yearly change of 98.61%. Universal's prices fluctuated between $45.19 and $67.80, with a yearly change of 50.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.