INC vs PLC Which Is a Better Investment?

When it comes to investing in the stock market, understanding the differences between INC (Incorporated) and PLC (Public Limited Company) stocks is crucial. INC stocks are typically privately owned companies where ownership is limited to a small group of shareholders. On the other hand, PLC stocks are publicly traded on the stock exchange, allowing anyone to buy shares of the company. It is important to assess the risks and potential rewards of investing in both types of stocks to make informed decisions for your portfolio.

INC or PLC?

When comparing INC and PLC, 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 INC and PLC.

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. INC has a dividend yield of -%, while PLC has a dividend yield of 4.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. INC reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.08%. On the other hand, PLC reports a 5-year dividend growth of 0.00% year and a payout ratio of 20.60%.

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 INC P/E ratio at -4.11 and PLC's P/E ratio at 21.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. INC P/B ratio is 2.59 while PLC's P/B ratio is 9.70.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, INC has seen a 5-year revenue growth of -0.33%, while PLC's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with INC's ROE at -58.25% and PLC's ROE at 54.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł2.38 for INC and €1.46 for PLC. Over the past year, INC's prices ranged from zł1.42 to zł3.11, with a yearly change of 119.79%. PLC's prices fluctuated between €1.37 and €1.88, with a yearly change of 37.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.