Gravity vs Aurora Which Is a Better Investment?

Gravity and Aurora stocks represent two very different investment opportunities in the market. Gravity is a South Korean developer of online games, known for its popular games such as Ragnarok Online and Dragonica. On the other hand, Aurora Cannabis is a Canadian cannabis company that produces and distributes medical and recreational marijuana products. Both stocks showcase potential for growth and profitability, but their respective industries and business models make them unique choices for investors seeking diverse opportunities in the market.

Gravity or Aurora?

When comparing Gravity and Aurora, 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 Gravity and Aurora.

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. Gravity has a dividend yield of -%, while Aurora has a dividend yield of 6.21%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Gravity reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 102.72%.

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 Gravity P/E ratio at 7.86 and Aurora's P/E ratio at 14.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Gravity P/B ratio is 1.23 while Aurora's P/B ratio is 1.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Gravity has seen a 5-year revenue growth of 1.53%, while Aurora's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Gravity's ROE at 16.71% and Aurora's ROE at 14.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.55 for Gravity and NT$66.00 for Aurora. Over the past year, Gravity's prices ranged from $57.37 to $88.85, with a yearly change of 54.87%. Aurora's prices fluctuated between NT$66.00 and NT$77.00, with a yearly change of 16.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.