Hindustan Zinc vs Vedanta Which Is More Lucrative?

Hindustan Zinc Ltd. and Vedanta Ltd. are two prominent players in the Indian stock market, both operating in the mining and metal industry. Hindustan Zinc, a subsidiary of Vedanta, is one of the largest producers of zinc and silver in the world. On the other hand, Vedanta is a diversified natural resources company with interests in mining, oil, and gas. Both companies have been subject to market fluctuations and regulatory challenges, making them an intriguing choice for investors seeking exposure to the metals sector.

Hindustan Zinc or Vedanta?

When comparing Hindustan Zinc and Vedanta, 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 Hindustan Zinc and Vedanta.

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. Hindustan Zinc has a dividend yield of 5.8%, while Vedanta has a dividend yield of 6.93%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hindustan Zinc reports a 5-year dividend growth of 12.00% year and a payout ratio of 0.00%. On the other hand, Vedanta reports a 5-year dividend growth of 10.35% 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 Hindustan Zinc P/E ratio at 24.19 and Vedanta's P/E ratio at 17.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hindustan Zinc P/B ratio is 27.74 while Vedanta's P/B ratio is 5.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hindustan Zinc has seen a 5-year revenue growth of 0.36%, while Vedanta's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hindustan Zinc's ROE at 67.65% and Vedanta's ROE at 29.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹492.10 for Hindustan Zinc and ₹506.70 for Vedanta. Over the past year, Hindustan Zinc's prices ranged from ₹284.60 to ₹807.70, with a yearly change of 183.80%. Vedanta's prices fluctuated between ₹249.10 and ₹526.60, with a yearly change of 111.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.