GREE vs Starbucks Which Is More Reliable?

Green Mountain Energy (GREE) and Starbucks are both popular stocks in the market today. GREE is known for its environmentally friendly energy solutions, while Starbucks is a global coffee chain with a strong presence in the food and beverage industry. Both companies have experienced fluctuations in their stock prices, with GREE showing potential for growth in the renewable energy sector, and Starbucks continuing to attract investors with its strong brand and innovative strategies. Investors should carefully analyze these stocks before making any investment decisions.

GREE or Starbucks?

When comparing GREE and Starbucks, 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 GREE and Starbucks.

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. GREE has a dividend yield of 3.63%, while Starbucks has a dividend yield of 2.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GREE reports a 5-year dividend growth of 1.92% year and a payout ratio of 0.00%. On the other hand, Starbucks reports a 5-year dividend growth of 10.35% year and a payout ratio of 68.73%.

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 GREE P/E ratio at 42.88 and Starbucks's P/E ratio at 29.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GREE P/B ratio is 0.86 while Starbucks's P/B ratio is -15.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GREE has seen a 5-year revenue growth of 0.19%, while Starbucks's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GREE's ROE at 1.94% and Starbucks's ROE at -46.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥451.00 for GREE and $97.98 for Starbucks. Over the past year, GREE's prices ranged from ¥401.00 to ¥612.00, with a yearly change of 52.62%. Starbucks's prices fluctuated between $71.55 and $103.32, with a yearly change of 44.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.