Nature vs Earth Which Offers More Value?

Nature vs Earth stocks refers to the debate surrounding investing in companies that focus on sustainability and environmental responsibility versus those that prioritize profit above all else. As the global climate crisis continues to escalate, investors are increasingly looking to support companies that prioritize practices such as renewable energy, waste reduction, and conservation of natural resources. This shift reflects a growing awareness of the long-term benefits of investing in businesses that prioritize the health of the planet.

Nature or Earth?

When comparing Nature and Earth, 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 Nature and Earth.

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. Nature has a dividend yield of 4.22%, while Earth has a dividend yield of 2.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nature reports a 5-year dividend growth of 0.00% year and a payout ratio of 16.98%. On the other hand, Earth reports a 5-year dividend growth of 0.52% 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 Nature P/E ratio at 3.78 and Earth's P/E ratio at 25.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nature P/B ratio is 0.42 while Earth's P/B ratio is 1.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nature has seen a 5-year revenue growth of 2.81%, while Earth's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nature's ROE at 11.35% and Earth's ROE at 6.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩9300.00 for Nature and ¥5350.00 for Earth. Over the past year, Nature's prices ranged from ₩9300.00 to ₩21200.00, with a yearly change of 127.96%. Earth's prices fluctuated between ¥4125.00 and ¥5460.00, with a yearly change of 32.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.