Root vs SU Which Performs Better?

When it comes to investing in the stock market, one common dilemma that many investors face is whether to choose growth stocks or value stocks. Growth stocks, often referred to as "Root" stocks, are companies that are expected to experience rapid earnings growth in the future. On the other hand, value stocks, also known as "SU" stocks, are companies that are considered undervalued based on their fundamental metrics. Each type of stock comes with its own set of risks and potential rewards, making it important for investors to carefully consider their investment goals and risk tolerance before making a decision.

Root or SU?

When comparing Root and SU, 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 Root and SU.

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. Root has a dividend yield of -%, while SU has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Root reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SU reports a 5-year dividend growth of 0.00% 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 Root P/E ratio at -89.89 and SU's P/E ratio at 17.18. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Root P/B ratio is 8.05 while SU's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Root has seen a 5-year revenue growth of 7.30%, while SU's is -0.94%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Root's ROE at -7.34% and SU's ROE at 13.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.81 for Root and $1.69 for SU. Over the past year, Root's prices ranged from $7.22 to $118.15, with a yearly change of 1536.43%. SU's prices fluctuated between $0.98 and $5.86, with a yearly change of 497.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.