NCR vs CAR Which Is a Smarter Choice?

NCR (National Capital Region) and CAR (Cordillera Administrative Region) are two distinct regions in the Philippines known for their growing stock markets. NCR, encompassing the capital city of Manila, is a bustling economic hub with numerous industries driving its stock market performance. On the other hand, CAR, located in the northern part of the country, is a region experiencing rapid growth and development, attracting investors looking for potential opportunities in emerging markets. Understanding the differences and similarities between NCR and CAR stocks is crucial for investors seeking to diversify their portfolios and capitalize on the unique characteristics of each region.

NCR or CAR?

When comparing NCR and CAR, 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 NCR and CAR.

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. NCR has a dividend yield of -%, while CAR has a dividend yield of 1.87%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NCR reports a 5-year dividend growth of 0.00% year and a payout ratio of -2.70%. On the other hand, CAR reports a 5-year dividend growth of 7.68% year and a payout ratio of 98.63%.

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 NCR P/E ratio at -3.87 and CAR's P/E ratio at 58.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NCR P/B ratio is 11.27 while CAR's P/B ratio is 5.10.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NCR has seen a 5-year revenue growth of -0.50%, while CAR's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NCR's ROE at -93.41% and CAR's ROE at 8.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.34 for NCR and A$38.81 for CAR. Over the past year, NCR's prices ranged from $11.00 to $30.69, with a yearly change of 179.02%. CAR's prices fluctuated between A$28.91 and A$42.70, with a yearly change of 47.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.