ICON vs Premium Brands Which Is a Smarter Choice?

When it comes to investing in the stock market, many investors are faced with the decision of choosing between iconic brands and premium brands. While iconic brands may have a strong reputation and loyal customer base, premium brands often offer a higher level of quality and exclusivity. Both types of stocks can offer potential for growth and returns, but it ultimately depends on the individual investor's risk tolerance and investment goals. Understanding the differences and nuances between these two types of stocks can help investors make more informed decisions in their investment strategies.

ICON or Premium Brands?

When comparing ICON and Premium Brands, 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 ICON and Premium Brands.

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. ICON has a dividend yield of -%, while Premium Brands has a dividend yield of 4.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ICON reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Premium Brands reports a 5-year dividend growth of 10.14% year and a payout ratio of 145.77%.

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 ICON P/E ratio at 23.05 and Premium Brands's P/E ratio at 35.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ICON P/B ratio is 1.76 while Premium Brands's P/B ratio is 2.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ICON has seen a 5-year revenue growth of 1.06%, while Premium Brands's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ICON's ROE at 7.87% and Premium Brands's ROE at 5.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $206.19 for ICON and C$79.38 for Premium Brands. Over the past year, ICON's prices ranged from $183.38 to $347.72, with a yearly change of 89.62%. Premium Brands's prices fluctuated between C$75.67 and C$97.28, with a yearly change of 28.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.