Hiscox vs NEXT Which Is More Favorable?

Hiscox Ltd. and NEXT Plc. are two prominent companies in the financial and retail sectors respectively. Hiscox Ltd. is an international specialist insurer with a focus on niche markets, while NEXT Plc. is a well-known British retailer offering clothing, footwear, and home products. Both companies have demonstrated strong performance in their respective industries, with solid financial prospects and a loyal customer base. Investors interested in diversifying their portfolio may find value in comparing these two stocks to make informed investment decisions.

Hiscox or NEXT?

When comparing Hiscox and NEXT, 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 Hiscox and NEXT.

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. Hiscox has a dividend yield of 2.6%, while NEXT has a dividend yield of 2.18%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hiscox reports a 5-year dividend growth of -0.13% year and a payout ratio of 15.57%. On the other hand, NEXT reports a 5-year dividend growth of 1.85% year and a payout ratio of 30.91%.

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 Hiscox P/E ratio at 11.02 and NEXT's P/E ratio at 14.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hiscox P/B ratio is 3.10 while NEXT's P/B ratio is 8.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hiscox has seen a 5-year revenue growth of 0.04%, while NEXT's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hiscox's ROE at 28.46% and NEXT's ROE at 55.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $29.50 for Hiscox and £9767.08 for NEXT. Over the past year, Hiscox's prices ranged from $25.09 to $35.25, with a yearly change of 40.49%. NEXT's prices fluctuated between £7952.00 and £11103.83, with a yearly change of 39.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.