Objective vs Target Which Is More Attractive?

Objective vs Target stocks are two concepts often used in the world of investing. Objective stocks refer to the overall goal or purpose of an investment, such as long-term growth or income generation. On the other hand, target stocks are specific stocks chosen to achieve the investor's objectives. While objective stocks guide the general investment strategy, target stocks help investors focus on specific companies that align with their overall goals. Understanding the difference between objective and target stocks can help investors make more informed decisions in their investment portfolios.

Objective or Target?

When comparing Objective and Target, 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 Target.

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 0.55%, while Target has a dividend yield of 3.3%. 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, Target reports a 5-year dividend growth of 11.59% year and a payout ratio of 46.70%.

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 49.90 and Target's P/E ratio at 14.21. 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 17.01 while Target's P/B ratio is 4.29.

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 Target's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Objective's ROE at 36.99% and Target's ROE at 31.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$16.38 for Objective and $133.34 for Target. Over the past year, Objective's prices ranged from A$10.92 to A$18.55, with a yearly change of 69.87%. Target's prices fluctuated between $120.21 and $181.86, with a yearly change of 51.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.