Premium vs Deluxe

When it comes to investing in stocks, two common terms that are often used interchangeably are premium and deluxe stocks. Premium stocks are typically considered to be high-quality investments with strong financial performance and growth potential. On the other hand, deluxe stocks are seen as luxury or high-end investments that are typically higher priced and considered more exclusive. Both types of stocks can offer investors unique opportunities for growth and diversification, but it's important to understand the differences between the two before making any investment decisions.

Premium or Deluxe?

When comparing Premium and Deluxe, 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 Premium and Deluxe.

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. Premium has a dividend yield of 1.53%, while Deluxe has a dividend yield of 6.16%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Premium reports a 5-year dividend growth of -22.35% year and a payout ratio of 22.34%. On the other hand, Deluxe reports a 5-year dividend growth of 0.00% year and a payout ratio of 141.07%.

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 Premium P/E ratio at 17.73 and Deluxe's P/E ratio at 22.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Premium P/B ratio is 5.42 while Deluxe's P/B ratio is 1.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Premium has seen a 5-year revenue growth of 846479.66%, while Deluxe's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Premium's ROE at 31.44% and Deluxe's ROE at 6.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2252.00 for Premium and $19.02 for Deluxe. Over the past year, Premium's prices ranged from ¥1350.00 to ¥2323.00, with a yearly change of 72.07%. Deluxe's prices fluctuated between $16.00 and $24.87, with a yearly change of 55.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.