LG Display vs REC Which Should You Buy?

LG Display and REC are both companies that operate in the display sector, but they have distinct differences in their stock performance. LG Display is a South Korean company that specializes in the production of various types of display panels, while REC is a Chinese company known for its focus on renewable energy solutions. Both stocks have experienced fluctuations in their prices in response to market trends and company performances. Investors should carefully evaluate the strengths and weaknesses of each company before making investment decisions.

LG Display or REC?

When comparing LG Display and REC, 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 LG Display and REC.

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. LG Display has a dividend yield of -%, while REC has a dividend yield of 3.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LG Display reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, REC reports a 5-year dividend growth of 9.03% year and a payout ratio of 6.65%.

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 LG Display P/E ratio at -1.17 and REC's P/E ratio at 9.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LG Display P/B ratio is 0.30 while REC's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LG Display has seen a 5-year revenue growth of 0.75%, while REC's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LG Display's ROE at -25.93% and REC's ROE at 21.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.18 for LG Display and ₹542.50 for REC. Over the past year, LG Display's prices ranged from $3.10 to $5.66, with a yearly change of 82.58%. REC's prices fluctuated between ₹389.20 and ₹654.00, with a yearly change of 68.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.