ID vs Key Which Outperforms?

When it comes to investing in the stock market, one of the key decisions investors need to make is whether to focus on identifying undervalued stocks (ID) or high-growth stocks with strong potential for future profits (Key). ID stocks are typically perceived as being overlooked or undervalued by the market, while Key stocks are often seen as having strong growth prospects. Both strategies have their advantages and drawbacks, and a successful investor will need to carefully consider their own risk tolerance and investment goals when deciding between the two approaches.

ID or Key?

When comparing ID and Key, 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 ID and Key.

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. ID has a dividend yield of 3.15%, while Key has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ID reports a 5-year dividend growth of 4.56% year and a payout ratio of 0.00%. On the other hand, Key reports a 5-year dividend growth of 0.00% 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 ID P/E ratio at 13.39 and Key's P/E ratio at 3.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ID P/B ratio is 2.12 while Key's P/B ratio is 2.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ID has seen a 5-year revenue growth of 0.22%, while Key's is -0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ID's ROE at 16.60% and Key's ROE at 73.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1579.00 for ID and ₹289.05 for Key. Over the past year, ID's prices ranged from ¥1054.00 to ¥1794.00, with a yearly change of 70.21%. Key's prices fluctuated between ₹7.14 and ₹289.05, with a yearly change of 3948.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.