PPK vs PP

When discussing stocks in the investment world, two commonly mentioned terms are PPK (Price-to-peak earnings ratio) and PP (Price-to-profits ratio). While both ratios are used to evaluate a company's stock performance relative to its earnings, there are key differences between them. PPK compares the stock price to the company's highest earnings over a specific period, while PP compares the stock price to the company's current or projected earnings. Investors must carefully consider the implications of each ratio before making investment decisions.

PPK or PP?

When comparing PPK and PP, 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 PPK and PP.

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. PPK has a dividend yield of -%, while PP has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. PPK reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, PP 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 PPK P/E ratio at -3.49 and PP's P/E ratio at 5.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PPK P/B ratio is 0.55 while PP's P/B ratio is 0.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PPK has seen a 5-year revenue growth of -0.87%, while PP's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PPK's ROE at -15.70% and PP's ROE at 4.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$0.42 for PPK and Rp456.00 for PP. Over the past year, PPK's prices ranged from A$0.32 to A$1.29, with a yearly change of 304.69%. PP's prices fluctuated between Rp272.00 and Rp755.00, with a yearly change of 177.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.