PAL vs Friend Which Performs Better?

PAL vs Friend stocks refer to two distinct types of investments in the stock market. PAL stocks are those of publicly traded companies, which are widely available for purchase by any investor. On the other hand, Friend stocks are those of privately held companies, which are typically only available for purchase by friends, family members, or other closely connected individuals. Each type of stock comes with its own advantages and risks, making it important for investors to carefully consider their options before making a decision.

PAL or Friend?

When comparing PAL and Friend, 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 PAL and Friend.

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. PAL has a dividend yield of 1.52%, while Friend has a dividend yield of 4.21%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PAL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Friend reports a 5-year dividend growth of 0.00% year and a payout ratio of 109.98%.

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 PAL P/E ratio at 21.20 and Friend's P/E ratio at 15.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PAL P/B ratio is 4.29 while Friend's P/B ratio is 1.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PAL has seen a 5-year revenue growth of 0.49%, while Friend's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PAL's ROE at 21.25% and Friend's ROE at 7.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3260.00 for PAL and ¥10.16 for Friend. Over the past year, PAL's prices ranged from ¥1597.00 to ¥3365.00, with a yearly change of 110.71%. Friend's prices fluctuated between ¥7.62 and ¥12.78, with a yearly change of 67.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.