KCC vs LAC Which Is More Attractive?

KCC and LAC stocks are two companies in the same industry that have been attracting the attention of investors. KCC has a history of strong financial performance and consistent growth, while LAC is a newer player in the market with high potential for future success. Both companies offer unique opportunities for investors looking to capitalize on the growth of the industry. In this analysis, we will compare the two stocks in terms of their financial performance, growth prospects, and overall investment potential.

KCC or LAC?

When comparing KCC and LAC, 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 KCC and LAC.

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. KCC has a dividend yield of 3.4%, while LAC has a dividend yield of 2.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. KCC reports a 5-year dividend growth of -37.74% year and a payout ratio of 12.69%. On the other hand, LAC reports a 5-year dividend growth of 4.36% 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 KCC P/E ratio at 4.46 and LAC's P/E ratio at 24.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. KCC P/B ratio is 0.41 while LAC's P/B ratio is 2.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, KCC has seen a 5-year revenue growth of 0.87%, while LAC's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with KCC's ROE at 8.83% and LAC's ROE at 9.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩232000.00 for KCC and ¥1156.00 for LAC. Over the past year, KCC's prices ranged from ₩199900.00 to ₩345000.00, with a yearly change of 72.59%. LAC's prices fluctuated between ¥682.00 and ¥1158.00, with a yearly change of 69.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.