MC vs PSG Which Is a Better Investment?

MC vs PSG stocks refer to the comparison between the stock performance of two popular companies - McDonald's Corporation (MC) and Procter & Gamble Co. (PSG). Both companies are giants in their respective industries, with McDonald's being a global fast-food chain and Procter & Gamble being a consumer goods powerhouse. Investors often compare their stocks to determine which is a better investment option. Factors such as revenue growth, profitability, market share, and economic trends play a crucial role in determining the performance of these stocks.

MC or PSG?

When comparing MC and PSG, 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 MC and PSG.

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. MC has a dividend yield of 8.18%, while PSG has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MC reports a 5-year dividend growth of 2.96% year and a payout ratio of 89.20%. On the other hand, PSG 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 MC P/E ratio at 11.40 and PSG's P/E ratio at 16.53. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MC P/B ratio is 2.33 while PSG's P/B ratio is 7.97.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MC has seen a 5-year revenue growth of 0.10%, while PSG's is -0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MC's ROE at 20.32% and PSG's ROE at 60.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿10.90 for MC and ฿0.52 for PSG. Over the past year, MC's prices ranged from ฿9.65 to ฿14.90, with a yearly change of 54.40%. PSG's prices fluctuated between ฿0.49 and ฿0.82, with a yearly change of 67.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.