PCL vs Tear Which Is More Attractive?
Investors often face the decision between investing in PCL (plastics) or Tear (technology and e-commerce) stocks. PCL stocks are known for their stability and consistent growth due to the increasing demand for plastic products in various industries. On the other hand, Tear stocks are often seen as more volatile but offer the potential for higher returns with the rapid advancements in technology and e-commerce. Both sectors have their own set of risks and rewards, making it important for investors to carefully weigh their options before making a final decision.
PCL or Tear?
When comparing PCL and Tear, 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 Tear.
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 Tear has a dividend yield of 4.67%. 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, Tear reports a 5-year dividend growth of 14.87% 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 PCL P/E ratio at -2.67 and Tear's P/E ratio at 13.18. 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 0.71 while Tear's P/B ratio is 1.19.
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 Tear's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PCL's ROE at -30.62% and Tear's ROE at 9.15%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩601.00 for PCL and ¥428.00 for Tear. Over the past year, PCL's prices ranged from ₩537.00 to ₩4385.00, with a yearly change of 716.57%. Tear's prices fluctuated between ¥403.00 and ¥498.00, with a yearly change of 23.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.