Premium vs Super Which Is More Attractive?

When it comes to investing in the stock market, investors are often faced with the choice between premium and super stocks. Premium stocks are typically well-established companies with a strong track record of success and stability. They are known for consistently delivering returns to shareholders through dividends and capital appreciation. On the other hand, super stocks are high-growth companies that have the potential for explosive growth and have the ability to outperform the market. Both types of stocks offer unique opportunities and risks for investors, making it important to carefully consider your investment goals and risk tolerance before making a decision.

Premium or Super?

When comparing Premium and Super, 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 Super.

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 1.38%, while Super has a dividend yield of 2.07%. 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 20.20%. On the other hand, Super reports a 5-year dividend growth of 0.00% year and a payout ratio of 619.76%.

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 18.08 and Super's P/E ratio at 226.03. 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 5.43 while Super's P/B ratio is 0.68.

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 1.67%, while Super's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Premium's ROE at 33.36% and Super's ROE at 0.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2526.00 for Premium and R2881.00 for Super. Over the past year, Premium's prices ranged from ¥1570.00 to ¥2668.00, with a yearly change of 69.94%. Super's prices fluctuated between R2135.00 and R3327.00, with a yearly change of 55.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.