PPC vs SEM Which Is More Reliable?

PPC (Pay-Per-Click) and SEM (Search Engine Marketing) are two popular strategies used by businesses to drive traffic to their websites and increase conversions. While both involve advertising on search engines like Google, they differ in their approach and implementation. PPC involves paying for each click on an ad, whereas SEM encompasses a broader range of marketing tactics to improve a company's visibility in search engine results. Understanding the differences and advantages of each can help businesses make informed decisions when investing in online advertising stocks.

PPC or SEM?

When comparing PPC and SEM, 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 PPC and SEM.

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. PPC has a dividend yield of 0.72%, while SEM has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PPC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SEM 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 PPC P/E ratio at 15.61 and SEM's P/E ratio at -5.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PPC P/B ratio is 0.93 while SEM's P/B ratio is 0.48.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PPC has seen a 5-year revenue growth of -0.04%, while SEM's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PPC's ROE at 5.92% and SEM's ROE at -9.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.29 for PPC and HK$0.05 for SEM. Over the past year, PPC's prices ranged from $0.29 to $0.43, with a yearly change of 48.79%. SEM's prices fluctuated between HK$0.04 and HK$0.06, with a yearly change of 74.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.