PLANT vs WEED Which Is Superior?

Plant vs. weed stocks refer to the difference between investing in companies that are involved in the legal cannabis industry (referred to as plant stocks) versus companies that are involved in the illegal or unregulated market (referred to as weed stocks). Plant stocks are seen as a more legitimate and regulated investment opportunity, with the potential for significant growth as the cannabis industry continues to expand. On the other hand, weed stocks are associated with higher risk and uncertainty due to the illegal nature of their operations. Investors must carefully consider the legal and financial implications before choosing to invest in either type of stock.

PLANT or WEED?

When comparing PLANT and WEED, 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 PLANT and WEED.

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. PLANT has a dividend yield of 3.26%, while WEED has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PLANT reports a 5-year dividend growth of -4.36% year and a payout ratio of 0.00%. On the other hand, WEED reports a 5-year dividend growth of 0.00% 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 PLANT P/E ratio at 31.35 and WEED's P/E ratio at 75.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PLANT P/B ratio is 0.80 while WEED's P/B ratio is 574.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PLANT has seen a 5-year revenue growth of 0.14%, while WEED's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PLANT's ROE at 2.38% and WEED's ROE at 23.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1521.00 for PLANT and $0.03 for WEED. Over the past year, PLANT's prices ranged from ¥1243.00 to ¥2190.00, with a yearly change of 76.19%. WEED's prices fluctuated between $0.03 and $0.11, with a yearly change of 266.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.