Metro vs Regional Which Is Stronger?

Metro and regional stocks are two distinct categories of publicly traded companies that operate in different geographic areas. Metro stocks typically represent companies based in major urban centers with high populations and significant economic activity. These companies often have access to a larger customer base and greater financial resources. On the other hand, regional stocks are associated with companies operating in smaller, often rural areas with lower population densities. Investors may choose to invest in either category based on their risk tolerance and investment goals.

Metro or Regional?

When comparing Metro and Regional, 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 Metro and Regional.

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. Metro has a dividend yield of 1.6%, while Regional has a dividend yield of 6.24%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Metro reports a 5-year dividend growth of 9.90% year and a payout ratio of 31.08%. On the other hand, Regional reports a 5-year dividend growth of 42.36% year and a payout ratio of 19.38%.

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 Metro P/E ratio at 20.50 and Regional's P/E ratio at 6.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Metro P/B ratio is 2.78 while Regional's P/B ratio is 1.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Metro has seen a 5-year revenue growth of 0.48%, while Regional's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Metro's ROE at 13.62% and Regional's ROE at 22.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $61.21 for Metro and Mex$120.96 for Regional. Over the past year, Metro's prices ranged from $49.26 to $63.93, with a yearly change of 29.78%. Regional's prices fluctuated between Mex$113.46 and Mex$172.16, with a yearly change of 51.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.