Kakao vs HYBE Which Outperforms?

Kakao Corp and HYBE Corporation are two of the biggest players in the South Korean entertainment industry. Kakao, known for its messaging app KakaoTalk and diverse business portfolio, has recently expanded into the entertainment sector. On the other hand, HYBE, formerly known as Big Hit Entertainment, is a powerhouse in the music industry, representing popular K-pop groups like BTS. Both companies have seen significant growth in their stock prices, attracting investors seeking exposure to the thriving Korean entertainment market.

Kakao or HYBE?

When comparing Kakao and HYBE, 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 Kakao and HYBE.

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. Kakao has a dividend yield of 0.13%, while HYBE has a dividend yield of 0.34%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kakao reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HYBE reports a 5-year dividend growth of 0.00% year and a payout ratio of -122.31%.

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 Kakao P/E ratio at -21.93 and HYBE's P/E ratio at -360.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kakao P/B ratio is 1.97 while HYBE's P/B ratio is 2.91.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kakao has seen a 5-year revenue growth of 1.75%, while HYBE's is -0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kakao's ROE at -9.05% and HYBE's ROE at -0.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩43400.00 for Kakao and ₩195600.00 for HYBE. Over the past year, Kakao's prices ranged from ₩32550.00 to ₩61900.00, with a yearly change of 90.17%. HYBE's prices fluctuated between ₩157700.00 and ₩261000.00, with a yearly change of 65.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.