HEG vs Pigeon Which Is More Attractive?

HEG Limited and Pigeon Corporation are two companies operating in very different industries but have caught the attention of investors in recent times. HEG Limited is a leading graphite electrode manufacturer, benefiting from the surge in demand for electric vehicles and renewable energy sources. On the other hand, Pigeon Corporation is a household name in Japan, specializing in healthcare and baby products. Both companies have seen significant growth potential, prompting investors to compare and analyze the two stocks for potential investment opportunities.

HEG or Pigeon?

When comparing HEG and Pigeon, 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 HEG and Pigeon.

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. HEG has a dividend yield of 5.23%, while Pigeon has a dividend yield of 0.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HEG reports a 5-year dividend growth of -17.32% year and a payout ratio of 0.00%. On the other hand, Pigeon 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 HEG P/E ratio at 8.49 and Pigeon's P/E ratio at 7.41. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HEG P/B ratio is 0.38 while Pigeon's P/B ratio is 0.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HEG has seen a 5-year revenue growth of -0.61%, while Pigeon's is 2.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HEG's ROE at 4.46% and Pigeon's ROE at 8.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹422.20 for HEG and $2.59 for Pigeon. Over the past year, HEG's prices ranged from ₹310.80 to ₹548.60, with a yearly change of 76.51%. Pigeon's prices fluctuated between $1.99 and $3.05, with a yearly change of 53.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.