PCL vs PLC Which Is More Promising?

PCL (Preferred Capital Limited) and PLC (Public Limited Company) are two types of stocks that represent different forms of ownership in a company. PCL stocks typically offer fixed dividends and priority in liquidation, while PLC stocks are commonly traded on the stock market and provide shareholders with voting rights. Investors must carefully consider the advantages and disadvantages of each type of stock before making investment decisions. Understanding the differences between PCL and PLC stocks can help investors make informed choices in building a diversified investment portfolio.

PCL or PLC?

When comparing PCL and PLC, 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 PCL and PLC.

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. PCL has a dividend yield of -%, while PLC has a dividend yield of 4.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PCL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, PLC reports a 5-year dividend growth of 0.00% year and a payout ratio of 23.88%.

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 PCL P/E ratio at -2.68 and PLC's P/E ratio at 3.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PCL P/B ratio is 0.85 while PLC's P/B ratio is 2.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PCL has seen a 5-year revenue growth of 47.51%, while PLC's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PCL's ROE at -37.30% and PLC's ROE at 70.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩700.00 for PCL and €1.52 for PLC. Over the past year, PCL's prices ranged from ₩700.00 to ₩4385.00, with a yearly change of 526.43%. PLC's prices fluctuated between €1.24 and €1.91, with a yearly change of 54.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.