Parkson Berhad vs Aeon Which Is a Smarter Choice?

Parkson Berhad and Aeon are two of the leading retail companies in Malaysia, both with a strong presence in the market. Parkson Berhad focuses on department stores, while Aeon is known for its variety of retail outlets including supermarkets, hypermarkets, and shopping malls. In recent years, their stocks have shown different trends with Parkson Berhad facing challenges in a competitive retail environment, while Aeon has demonstrated steady growth and resilience. Investors are closely monitoring these two companies to assess their performance in the retail sector.

Parkson Berhad or Aeon?

When comparing Parkson Berhad and Aeon, 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 Parkson Berhad and Aeon.

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. Parkson Berhad has a dividend yield of -%, while Aeon has a dividend yield of 0.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Parkson Berhad reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Aeon reports a 5-year dividend growth of -7.54% year and a payout ratio of 0.00%.

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 Parkson Berhad P/E ratio at -6.36 and Aeon's P/E ratio at 122.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Parkson Berhad P/B ratio is 0.17 while Aeon's P/B ratio is 3.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Parkson Berhad has seen a 5-year revenue growth of -0.17%, while Aeon's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Parkson Berhad's ROE at -2.53% and Aeon's ROE at 2.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are RM0.20 for Parkson Berhad and $24.93 for Aeon. Over the past year, Parkson Berhad's prices ranged from RM0.17 to RM0.32, with a yearly change of 90.91%. Aeon's prices fluctuated between $20.27 and $29.30, with a yearly change of 44.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.