LVMH vs Quest Which Is More Attractive?
LVMH Moët Hennessy Louis Vuitton SE, also known as LVMH, is a French multinational luxury goods conglomerate that owns a diverse portfolio of high-end brands. In comparison, Quest Diagnostics is an American provider of diagnostic information services. While LVMH stocks represent the luxury goods sector, Quest stocks are part of the healthcare industry. Both companies have different market dynamics and financial performance, making them appealing to investors for different reasons.
LVMH or Quest?
When comparing LVMH and Quest, 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 LVMH and Quest.
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.
LVMH has a dividend yield of 2.17%, while Quest has a dividend yield of 3.85%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%. On the other hand, Quest reports a 5-year dividend growth of 58.49% 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 LVMH P/E ratio at 22.71 and Quest's P/E ratio at 13.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LVMH P/B ratio is 4.89 while Quest's P/B ratio is 2.28.
Growth Investors:
Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LVMH has seen a 5-year revenue growth of 0.85%, while Quest's is -0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LVMH's ROE at 22.19% and Quest's ROE at 17.36%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are $668.00 for LVMH and €5.72 for Quest. Over the past year, LVMH's prices ranged from $598.42 to $958.69, with a yearly change of 60.20%. Quest's prices fluctuated between €4.60 and €6.25, with a yearly change of 35.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.