Nac vs ACC Which Is More Profitable?

When it comes to investing in the stock market, two common sectors that investors often compare are NAC (Natural Resources, Agriculture, and Commodities) and ACC (Automobiles, Consumer goods, and Communications). NAC stocks primarily consist of companies involved in industries such as mining, agriculture, and energy, while ACC stocks focus on companies in the automotive, consumer goods, and telecommunications sectors. Understanding the differences between these two sectors can help investors make informed decisions when building a diversified investment portfolio.

Nac or ACC?

When comparing Nac and ACC, 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 Nac and ACC.

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. Nac has a dividend yield of 3.63%, while ACC has a dividend yield of 0.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nac reports a 5-year dividend growth of 8.18% year and a payout ratio of 0.00%. On the other hand, ACC reports a 5-year dividend growth of -9.22% 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 Nac P/E ratio at 16.86 and ACC's P/E ratio at 19.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nac P/B ratio is 1.14 while ACC's P/B ratio is 2.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nac has seen a 5-year revenue growth of -0.72%, while ACC's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nac's ROE at 6.67% and ACC's ROE at 14.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥576.00 for Nac and ₹2253.45 for ACC. Over the past year, Nac's prices ranged from ¥486.50 to ¥600.00, with a yearly change of 23.33%. ACC's prices fluctuated between ₹1868.20 and ₹2844.00, with a yearly change of 52.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.