SL vs AL Which Is More Attractive?
SL and AL stocks refer to two different types of investing strategies in the stock market. SL, or value investing, focuses on buying undervalued stocks with the potential for long-term growth. AL, or growth investing, prioritizes investing in companies with high growth potential, regardless of current valuation. Both strategies have their own advantages and risks, and choosing the right approach depends on individual investment goals and risk tolerance. Understanding the differences between SL and AL stocks is essential for successful stock market investing.
SL or AL?
When comparing SL and AL, 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 SL and AL.
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.
SL has a dividend yield of 2.87%, while AL has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SL reports a 5-year dividend growth of 17.61% year and a payout ratio of 12.35%. On the other hand, AL 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 SL P/E ratio at 3.88 and AL's P/E ratio at -15.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SL P/B ratio is 0.66 while AL's P/B ratio is -36.54.
Growth Investors:
Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SL has seen a 5-year revenue growth of 1.22%, while AL's is -0.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SL's ROE at 17.93% and AL's ROE at 166.45%.
Retail Investors:
Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩31100.00 for SL and HK$0.57 for AL. Over the past year, SL's prices ranged from ₩28400.00 to ₩47650.00, with a yearly change of 67.78%. AL's prices fluctuated between HK$0.48 and HK$0.98, with a yearly change of 104.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.