Premier vs Premium Which Is More Favorable?

Premier vs Premium stocks are often confused due to their similar sounding names, but they have significant differences in terms of quality and performance. Premier stocks are typically considered to be top-tier investments that represent companies with strong financials, stable growth, and a solid track record. On the other hand, premium stocks are those that are priced higher than their intrinsic value, often due to market hype or speculation. Investors should carefully analyze both types of stocks before making any investment decisions.

Premier or Premium?

When comparing Premier and Premium, 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 Premier and Premium.

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. Premier has a dividend yield of 3.89%, while Premium has a dividend yield of 1.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Premier reports a 5-year dividend growth of 0.00% year and a payout ratio of 62.31%. On the other hand, Premium reports a 5-year dividend growth of -22.35% year and a payout ratio of 20.20%.

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 Premier P/E ratio at 14.90 and Premium's P/E ratio at 18.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Premier P/B ratio is 1.11 while Premium's P/B ratio is 5.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Premier has seen a 5-year revenue growth of -0.07%, while Premium's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Premier's ROE at 7.08% and Premium's ROE at 33.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.60 for Premier and ¥2527.00 for Premium. Over the past year, Premier's prices ranged from $17.95 to $23.56, with a yearly change of 31.22%. Premium's prices fluctuated between ¥1570.00 and ¥2668.00, with a yearly change of 69.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.