Premium vs Supreme Which Should You Buy?

When it comes to investing in the stock market, investors often have to choose between premium and supreme stocks. Premium stocks are typically considered to be those of well-established companies with a proven track record of success and stability. On the other hand, supreme stocks are those that exhibit exceptional growth potential and market dominance. Both types of stocks offer unique benefits and risks, making it essential for investors to carefully evaluate their options based on their investment goals and risk tolerance.

Premium or Supreme?

When comparing Premium and Supreme, 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 Supreme.

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 1.37%, while Supreme has a dividend yield of 2.96%. 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, Supreme reports a 5-year dividend growth of 0.00% year and a payout ratio of 19.36%.

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 18.25 and Supreme's P/E ratio at 8.83. 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 5.48 while Supreme's P/B ratio is 3.42.

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 Supreme's is 2.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Premium's ROE at 33.36% and Supreme's ROE at 42.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2530.00 for Premium and £165.00 for Supreme. Over the past year, Premium's prices ranged from ¥1570.00 to ¥2668.00, with a yearly change of 69.94%. Supreme's prices fluctuated between £87.00 and £209.70, with a yearly change of 141.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.