Legend vs Senior Which Is a Smarter Choice?

Legend vs Senior stocks refers to two different types of stock investments based on the reputation and age of the company. Legend stocks are typically newer, innovative companies with high growth potential but also higher risks. On the other hand, Senior stocks are well-established, stable companies with a long history of success and lower risk. Choosing between these two types of stocks requires investors to consider their risk tolerance, investment goals, and time horizon. Ultimately, the decision between Legend and Senior stocks can significantly impact an investor's portfolio performance.

Legend or Senior?

When comparing Legend and Senior, 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 Legend and Senior.

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. Legend has a dividend yield of -%, while Senior has a dividend yield of 1.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Legend reports a 5-year dividend growth of -4.24% year and a payout ratio of -196.30%. On the other hand, Senior reports a 5-year dividend growth of -24.84% year and a payout ratio of 31.25%.

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 Legend P/E ratio at -3.87 and Senior's P/E ratio at 21.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Legend P/B ratio is 0.28 while Senior's P/B ratio is 1.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Legend has seen a 5-year revenue growth of 0.25%, while Senior's is -0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Legend's ROE at -6.93% and Senior's ROE at 6.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$7.62 for Legend and £154.60 for Senior. Over the past year, Legend's prices ranged from HK$5.13 to HK$9.47, with a yearly change of 84.60%. Senior's prices fluctuated between £120.00 and £183.00, with a yearly change of 52.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.