SM Entertainment vs HYBE

SM Entertainment and HYBE Corporation are two of the biggest entertainment companies in South Korea, both known for managing some of the biggest K-pop groups in the industry. Investors have been closely watching their stocks, as both companies have seen significant growth in recent years. While SM Entertainment has a long-standing reputation and a strong roster of artists, HYBE, formerly known as Big Hit Entertainment, has gained attention for its global success with groups like BTS. The competition between the two companies has sparked interest among investors, leading to a comparison of their stocks and overall performance in the market.

SM Entertainment or HYBE?

When comparing SM Entertainment and HYBE, 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 SM Entertainment and HYBE.

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. SM Entertainment has a dividend yield of 1.82%, while HYBE has a dividend yield of 0.39%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SM Entertainment reports a 5-year dividend growth of 0.00% year and a payout ratio of 46.99%. On the other hand, HYBE reports a 5-year dividend growth of 0.00% year and a payout ratio of 37.65%.

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 SM Entertainment P/E ratio at 25.81 and HYBE's P/E ratio at 99.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SM Entertainment P/B ratio is 2.26 while HYBE's P/B ratio is 2.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SM Entertainment has seen a 5-year revenue growth of 0.50%, while HYBE's is -0.77%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SM Entertainment's ROE at 8.40% and HYBE's ROE at 2.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩65800.00 for SM Entertainment and ₩178900.00 for HYBE. Over the past year, SM Entertainment's prices ranged from ₩55100.00 to ₩122200.00, with a yearly change of 121.78%. HYBE's prices fluctuated between ₩157700.00 and ₩261000.00, with a yearly change of 65.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.