REC vs LEC Which Outperforms?

REC and LEC stocks are two different types of renewable energy companies that specialize in solar energy production. REC stocks belong to REC Group, a leading solar panel manufacturer, while LEC stocks are associated with LEC Clean Energy, a firm focused on building and operating solar farms. Both companies are highly regarded in the industry for their sustainable practices and commitment to reducing carbon emissions. Investors interested in green energy opportunities should consider REC and LEC stocks for potential growth and positive impact on the environment.

REC or LEC?

When comparing REC and LEC, 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 REC and LEC.

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. REC has a dividend yield of 2.98%, while LEC has a dividend yield of 1.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. REC reports a 5-year dividend growth of 9.03% year and a payout ratio of 6.65%. On the other hand, LEC reports a 5-year dividend growth of -15.53% year and a payout ratio of 0.00%.

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 REC P/E ratio at 10.09 and LEC's P/E ratio at 36.17. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. REC P/B ratio is 2.04 while LEC's P/B ratio is 1.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, REC has seen a 5-year revenue growth of 1.15%, while LEC's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with REC's ROE at 21.27% and LEC's ROE at 3.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹562.00 for REC and ¥1287.00 for LEC. Over the past year, REC's prices ranged from ₹389.20 to ₹654.00, with a yearly change of 68.04%. LEC's prices fluctuated between ¥983.00 and ¥1500.00, with a yearly change of 52.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.