NVE vs NSE Which Performs Better?

When it comes to investing in the stock market, two common categories are Non-Voting Equity (NVE) and Non-Standard Equity (NSE) stocks. NVE stocks do not come with voting rights in the company, while NSE stocks may have unique characteristics such as limited trading availability or special ownership rights. Investors must carefully consider the implications of holding either type of stock in their portfolio, as they can have different impacts on decision-making and potential returns.

NVE or NSE?

When comparing NVE and NSE, 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 NVE and NSE.

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. NVE has a dividend yield of 6.1%, while NSE has a dividend yield of 0.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVE reports a 5-year dividend growth of 0.00% year and a payout ratio of 119.93%. On the other hand, NSE reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.12%.

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 NVE P/E ratio at 24.59 and NSE's P/E ratio at 20.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVE P/B ratio is 6.11 while NSE's P/B ratio is 2.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVE has seen a 5-year revenue growth of 0.28%, while NSE's is 0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVE's ROE at 24.62% and NSE's ROE at 12.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $81.43 for NVE and €28.60 for NSE. Over the past year, NVE's prices ranged from $68.23 to $90.24, with a yearly change of 32.26%. NSE's prices fluctuated between €19.40 and €31.00, with a yearly change of 59.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.