NAVER vs Kakao Which Is More Lucrative?

NAVER and Kakao are two of the biggest names in the South Korean technology industry, known for their diverse range of services including search engines, messaging, e-commerce, and more. As investors look to capitalize on the growing popularity of these companies, the battle between NAVER and Kakao stocks has become increasingly competitive. Both companies have shown strong growth potential, but with unique strengths and weaknesses, making it important for investors to carefully weigh their options before deciding where to place their bets.

NAVER or Kakao?

When comparing NAVER and Kakao, 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 NAVER and Kakao.

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. NAVER has a dividend yield of 0.58%, while Kakao has a dividend yield of 0.14%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NAVER reports a 5-year dividend growth of 30.86% year and a payout ratio of 10.78%. On the other hand, Kakao 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 NAVER P/E ratio at 18.75 and Kakao's P/E ratio at -21.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NAVER P/B ratio is 1.28 while Kakao's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NAVER has seen a 5-year revenue growth of 0.68%, while Kakao's is 1.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NAVER's ROE at 7.09% and Kakao's ROE at -9.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩203000.00 for NAVER and ₩42950.00 for Kakao. Over the past year, NAVER's prices ranged from ₩151100.00 to ₩235500.00, with a yearly change of 55.86%. Kakao's prices fluctuated between ₩32550.00 and ₩61900.00, with a yearly change of 90.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.