Hoosiers vs NorthWestern Which Should You Buy?

Hoosiers vs Northwestern stocks is a comparison between two prominent universities and their respective investment portfolios. Indiana University's Hoosier Fund and Northwestern University's Endowment Fund are analyzed based on their investment strategies, performance, and overall financial health. Both institutions have a long-standing reputation for sound financial management and achieving impressive returns on their investments. By examining these stocks, investors can gain insights into the potential benefits and risks of investing in higher education institutions.

Hoosiers or NorthWestern?

When comparing Hoosiers and NorthWestern, 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 Hoosiers and NorthWestern.

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. Hoosiers has a dividend yield of 5.39%, while NorthWestern has a dividend yield of 5.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hoosiers reports a 5-year dividend growth of 20.11% year and a payout ratio of 0.00%. On the other hand, NorthWestern reports a 5-year dividend growth of 3.08% year and a payout ratio of 69.66%.

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 Hoosiers P/E ratio at 10.43 and NorthWestern's P/E ratio at 14.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hoosiers P/B ratio is 1.01 while NorthWestern's P/B ratio is 1.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hoosiers has seen a 5-year revenue growth of 0.55%, while NorthWestern's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hoosiers's ROE at 9.85% and NorthWestern's ROE at 8.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1039.00 for Hoosiers and $54.32 for NorthWestern. Over the past year, Hoosiers's prices ranged from ¥863.00 to ¥1180.00, with a yearly change of 36.73%. NorthWestern's prices fluctuated between $46.15 and $57.48, with a yearly change of 24.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.