Nu vs NorthWestern

When it comes to investing in the stock market, two companies that often appear on investors' radar are Nu Skin Enterprises (NU) and NorthWestern Corporation (NWE). Nu Skin is a multi-level marketing company that offers a range of personal care and wellness products, while NorthWestern is a utility company providing electricity and natural gas services to customers in the Northwestern United States. Both companies have their own unique strengths and weaknesses, making them attractive options for investors looking to diversify their portfolios.

Nu or NorthWestern?

When comparing Nu and NorthWestern, 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 Nu and NorthWestern.

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. Nu has a dividend yield of -%, while NorthWestern has a dividend yield of 5.75%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nu reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, NorthWestern reports a 5-year dividend growth of 3.08% year and a payout ratio of 75.16%.

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 Nu P/E ratio at 44.38 and NorthWestern's P/E ratio at 16.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nu P/B ratio is 9.81 while NorthWestern's P/B ratio is 1.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nu has seen a 5-year revenue growth of 31.79%, while NorthWestern's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nu's ROE at 23.52% and NorthWestern's ROE at 7.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.08 for Nu and $56.08 for NorthWestern. Over the past year, Nu's prices ranged from $7.69 to $15.16, with a yearly change of 97.14%. NorthWestern's prices fluctuated between $46.15 and $57.48, with a yearly change of 24.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.