Look vs SEEK Which Is More Promising?

When it comes to investing in the stock market, two common strategies are "look" and "seek" stocks. "Look" stocks are those that are widely known and popular among investors, often from well-established companies with a proven track record. On the other hand, "seek" stocks are those that are lesser-known and may require more research and analysis to uncover potential opportunities. Both approaches have their advantages and drawbacks, so it's important for investors to carefully consider their investment goals and risk tolerance when choosing between look and seek stocks.

Look or SEEK?

When comparing Look and SEEK, 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 Look and SEEK.

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. Look has a dividend yield of 0.4%, while SEEK has a dividend yield of 0.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Look reports a 5-year dividend growth of -19.73% year and a payout ratio of 0.00%. On the other hand, SEEK reports a 5-year dividend growth of -1.69% year and a payout ratio of -81.17%.

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 Look P/E ratio at 9.32 and SEEK's P/E ratio at -175.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Look P/B ratio is 0.49 while SEEK's P/B ratio is 6.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Look has seen a 5-year revenue growth of 0.31%, while SEEK's is -0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Look 's ROE at 5.61% and SEEK's ROE at -3.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2510.00 for Look and $31.89 for SEEK. Over the past year, Look 's prices ranged from ¥2260.00 to ¥3095.00, with a yearly change of 36.95%. SEEK's prices fluctuated between $26.13 and $37.64, with a yearly change of 44.05%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.