Snap vs Minerva Which Is a Better Investment?

Snap Inc. and Minerva Neurosciences Inc. are two companies operating in different sectors of the market. Snap, known for its popular social media platform Snapchat, has captured the attention of younger generations with its innovative features and engaging content. On the other hand, Minerva Neurosciences is a biopharmaceutical company focused on developing novel therapies for central nervous system disorders. Both companies have shown potential for growth and profitability, making them attractive options for investors looking to diversify their portfolios.

Snap or Minerva?

When comparing Snap and Minerva, 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 Snap and Minerva.

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. Snap has a dividend yield of -%, while Minerva has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Snap reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Minerva reports a 5-year dividend growth of 0.00% year and a payout ratio of 161.10%.

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 Snap P/E ratio at -20.82 and Minerva's P/E ratio at 179.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Snap P/B ratio is 9.00 while Minerva's P/B ratio is 18.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Snap has seen a 5-year revenue growth of 2.15%, while Minerva's is -0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Snap's ROE at -43.31% and Minerva's ROE at 18.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.93 for Snap and $3.75 for Minerva. Over the past year, Snap's prices ranged from $8.29 to $17.90, with a yearly change of 115.92%. Minerva's prices fluctuated between $3.75 and $6.51, with a yearly change of 73.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.