Objective vs Personal Which Is Superior?

Objective stocks refer to investments made based on specific financial goals and criteria, such as risk tolerance, time horizon, and desired returns. These stocks are selected through a systematic analysis of market trends, industry performance, and company fundamentals. In contrast, personal stocks are investments made based on individual preferences, beliefs, or emotions. These choices are often influenced by personal interests, values, or experiences, rather than purely financial considerations. Both approaches have their own benefits and risks, and understanding the differences is crucial for successful investing.

Objective or Personal?

When comparing Objective and Personal, 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 Objective and Personal.

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. Objective has a dividend yield of 0.46%, while Personal has a dividend yield of 6.14%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Objective reports a 5-year dividend growth of 21.98% year and a payout ratio of 40.83%. On the other hand, Personal reports a 5-year dividend growth of -13.48% year and a payout ratio of 76.28%.

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 Objective P/E ratio at 53.54 and Personal's P/E ratio at 13.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Objective P/B ratio is 18.16 while Personal's P/B ratio is 1.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Objective has seen a 5-year revenue growth of 0.67%, while Personal's is -0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Objective's ROE at 36.99% and Personal's ROE at 14.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$17.10 for Objective and £192.00 for Personal. Over the past year, Objective's prices ranged from A$10.54 to A$17.59, with a yearly change of 66.89%. Personal's prices fluctuated between £145.02 and £210.00, with a yearly change of 44.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.