SPG vs Bayer Which Is More Promising?

SPG (Simon Property Group) and Bayer are two prominent companies in very different industries. SPG is a major player in the real estate sector, specifically focusing on shopping malls and retail properties, while Bayer is a multinational pharmaceutical and life sciences company. Both companies have seen fluctuations in their stock performance over the years, with SPG being impacted by changes in consumer shopping habits and Bayer facing challenges in the healthcare market. Analyzing the financial health and future outlook of these companies can provide valuable insights for investors.

SPG or Bayer?

When comparing SPG and Bayer, 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 SPG and Bayer.

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. SPG has a dividend yield of 1.01%, while Bayer has a dividend yield of 0.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SPG reports a 5-year dividend growth of 0.00% year and a payout ratio of 39.80%. On the other hand, Bayer reports a 5-year dividend growth of -10.74% year and a payout ratio of -13.52%.

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 SPG P/E ratio at 39.38 and Bayer's P/E ratio at -5.56. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SPG P/B ratio is 1.82 while Bayer's P/B ratio is 0.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SPG has seen a 5-year revenue growth of 0.16%, while Bayer's is 3.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SPG's ROE at 4.84% and Bayer's ROE at -2.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩18780.00 for SPG and $5.23 for Bayer. Over the past year, SPG's prices ranged from ₩18600.00 to ₩37300.00, with a yearly change of 100.54%. Bayer's prices fluctuated between $4.94 and $9.79, with a yearly change of 98.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.