Origin vs Origin Energy Which Is More Promising?

Origin Energy is an Australian energy company that operates in both the upstream and downstream sectors of the energy industry. Origin Energy stocks have been a popular investment choice for many investors due to the company's strong presence in the Australian market and its focus on renewable energy projects. However, Origin Energy faces competition from other energy companies such as Origin, a leading video game platform that has seen significant growth in recent years. Investors looking to invest in energy stocks have a variety of options to choose from, each with its own unique strengths and weaknesses.

Origin or Origin Energy?

When comparing Origin and Origin Energy, 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 Origin and Origin Energy.

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. Origin has a dividend yield of 2.96%, while Origin Energy has a dividend yield of 6.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Origin reports a 5-year dividend growth of 4.94% year and a payout ratio of 0.00%. On the other hand, Origin Energy reports a 5-year dividend growth of 0.00% year and a payout ratio of 52.34%.

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 Origin P/E ratio at -5.12 and Origin Energy's P/E ratio at 9.19. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Origin P/B ratio is 0.28 while Origin Energy's P/B ratio is 1.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Origin has seen a 5-year revenue growth of -0.17%, while Origin Energy's is 0.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Origin's ROE at -5.30% and Origin Energy's ROE at 20.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1183.00 for Origin and $6.58 for Origin Energy. Over the past year, Origin's prices ranged from ¥1100.00 to ¥1350.00, with a yearly change of 22.73%. Origin Energy's prices fluctuated between $5.16 and $7.72, with a yearly change of 49.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.