Renew vs Restore Which Should You Buy?

When it comes to investing, choosing between renew and restore stocks can be a challenging decision. Renew stocks are companies that focus on innovation and growth in emerging industries, while restore stocks are established companies that have faced challenges and are undergoing a revitalization process. Both types of stocks offer unique opportunities for investors looking to capitalize on different market trends. Understanding the differences between renew and restore stocks can help investors make informed decisions to maximize their investment portfolio.

Renew or Restore?

When comparing Renew and Restore, 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 Renew and Restore.

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. Renew has a dividend yield of 2.9%, while Restore has a dividend yield of 2.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Renew reports a 5-year dividend growth of 11.79% year and a payout ratio of 32.13%. On the other hand, Restore reports a 5-year dividend growth of -3.52% year and a payout ratio of 239.47%.

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 Renew P/E ratio at 10.79 and Restore's P/E ratio at 78.92. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Renew P/B ratio is 2.32 while Restore's P/B ratio is 1.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Renew has seen a 5-year revenue growth of 0.60%, while Restore's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Renew's ROE at 22.35% and Restore's ROE at 1.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £641.00 for Renew and £218.00 for Restore. Over the past year, Renew's prices ranged from £631.00 to £1296.00, with a yearly change of 105.39%. Restore's prices fluctuated between £2.28 and £295.88, with a yearly change of 12877.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.