Huntsman vs Empire Which Should You Buy?

Huntsman Corporation and Empire Company Limited are two prominent players in the stock market, each with its own unique strengths and challenges. Huntsman is a global chemical company known for its innovative products and services, while Empire is a leading Canadian retailer with a diverse portfolio of grocery, fuel, and real estate assets. Both companies have experienced ups and downs in their stock performance, making them compelling options for investors seeking opportunities in the market. This comparison will analyze their financial performance, market trends, and potential for growth.

Huntsman or Empire?

When comparing Huntsman and Empire, 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 Huntsman and Empire.

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. Huntsman has a dividend yield of 5.25%, while Empire has a dividend yield of 1.76%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Huntsman reports a 5-year dividend growth of 7.89% year and a payout ratio of -142.86%. On the other hand, Empire reports a 5-year dividend growth of 7.46% year and a payout ratio of 28.10%.

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 Huntsman P/E ratio at -27.55 and Empire's P/E ratio at 16.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Huntsman P/B ratio is 1.05 while Empire's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Huntsman has seen a 5-year revenue growth of -0.13%, while Empire's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Huntsman's ROE at -3.77% and Empire's ROE at 12.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.67 for Huntsman and $31.81 for Empire. Over the past year, Huntsman's prices ranged from $18.67 to $27.01, with a yearly change of 44.67%. Empire's prices fluctuated between $22.27 and $32.67, with a yearly change of 46.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.