REACT vs Renew Which Performs Better?

When it comes to investing in the stock market, two popular strategies that are often compared are REACT and Renew stocks. REACT stocks refer to companies that are known for their stability and consistent performance over time. On the other hand, Renew stocks are associated with companies that are focused on innovation and growth opportunities. Understanding the differences between these two strategies can help investors make informed decisions about where to allocate their resources for maximum returns.

REACT or Renew?

When comparing REACT and Renew, 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 REACT and Renew.

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. REACT has a dividend yield of -%, while Renew has a dividend yield of 1.82%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. REACT reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Renew reports a 5-year dividend growth of 13.18% year and a payout ratio of 32.13%.

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 REACT P/E ratio at 69.09 and Renew's P/E ratio at 16.54. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. REACT P/B ratio is 2.33 while Renew's P/B ratio is 3.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, REACT has seen a 5-year revenue growth of 79.80%, while Renew's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with REACT's ROE at 3.40% and Renew's ROE at 23.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £85.50 for REACT and £970.00 for Renew. Over the past year, REACT's prices ranged from £60.00 to £98.00, with a yearly change of 63.33%. Renew's prices fluctuated between £800.00 and £1296.00, with a yearly change of 62.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.