MS vs ALS Which Should You Buy?

Both multiple sclerosis (MS) and amyotrophic lateral sclerosis (ALS) are devastating neurological diseases that impact millions of people worldwide. Investors interested in healthcare and biotech stocks often compare the potential for growth and profitability between companies developing treatments and therapies for these conditions. While there is currently no cure for either disease, advancements in medical research offer hope for improved outcomes for patients. Understanding the differences and similarities between MS and ALS stocks can help investors make informed decisions in the market.

MS or ALS?

When comparing MS and ALS, 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 MS and ALS.

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. MS has a dividend yield of 7.32%, while ALS has a dividend yield of 2.51%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MS reports a 5-year dividend growth of 0.00% year and a payout ratio of 68.74%. On the other hand, ALS reports a 5-year dividend growth of 11.64% year and a payout ratio of 1463.57%.

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 MS P/E ratio at 6.26 and ALS's P/E ratio at 574.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MS P/B ratio is 0.76 while ALS's P/B ratio is 6.27.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MS has seen a 5-year revenue growth of -0.10%, while ALS's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MS's ROE at 12.35% and ALS's ROE at 0.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.80 for MS and A$15.10 for ALS. Over the past year, MS's prices ranged from HK$0.76 to HK$1.06, with a yearly change of 39.47%. ALS's prices fluctuated between A$11.75 and A$16.50, with a yearly change of 40.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.