Kia vs Compass Which Outperforms?

The Kia and Compass stocks are two prominent players in the automotive industry, each with their own unique strengths and weaknesses. Kia, a South Korean automaker known for its reliable and affordable vehicles, has seen consistent growth in recent years. On the other hand, Compass, an American automobile manufacturer, has also gained a loyal customer base with its stylish and innovative designs. Investors looking to capitalize on the automotive sector may find these two stocks to be worth considering for their portfolios.

Kia or Compass?

When comparing Kia and Compass, 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 Kia and Compass.

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. Kia has a dividend yield of 5.79%, while Compass has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kia reports a 5-year dividend growth of 44.14% year and a payout ratio of 22.74%. On the other hand, Compass 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 Kia P/E ratio at 4.01 and Compass's P/E ratio at -28.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kia P/B ratio is 0.74 while Compass's P/B ratio is 10.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kia has seen a 5-year revenue growth of 0.87%, while Compass's is 0.67%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kia's ROE at 19.60% and Compass's ROE at -39.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩96100.00 for Kia and $8.12 for Compass. Over the past year, Kia's prices ranged from ₩89500.00 to ₩135000.00, with a yearly change of 50.84%. Compass's prices fluctuated between $2.89 and $10.25, with a yearly change of 254.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.