Spire vs Vermilion Energy

Investors looking to diversify their portfolios may be considering Spire (NYSE: SR) and Vermilion Energy (NYSE: VET) stocks. Spire is a natural gas utility company based in St. Louis, Missouri, while Vermilion Energy is a Canadian-based oil and gas producer with operations around the world. Both companies have experienced fluctuating stock prices in recent years due to shifts in energy markets and geopolitical factors. Investors should carefully analyze each company's financial health, growth potential, and dividend yield before making investment decisions.

Spire or Vermilion Energy?

When comparing Spire and Vermilion Energy, 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 Spire and Vermilion Energy.

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. Spire has a dividend yield of 5.76%, while Vermilion Energy has a dividend yield of 3.56%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Spire reports a 5-year dividend growth of 5.04% year and a payout ratio of 72.16%. On the other hand, Vermilion Energy reports a 5-year dividend growth of -31.83% year and a payout ratio of -8.26%.

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 Spire P/E ratio at 15.40 and Vermilion Energy's P/E ratio at -2.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Spire P/B ratio is 1.13 while Vermilion Energy's P/B ratio is 0.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Spire has seen a 5-year revenue growth of 0.27%, while Vermilion Energy's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Spire's ROE at 7.74% and Vermilion Energy's ROE at -26.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $65.26 for Spire and $9.41 for Vermilion Energy. Over the past year, Spire's prices ranged from $54.15 to $68.02, with a yearly change of 25.61%. Vermilion Energy's prices fluctuated between $8.71 and $15.56, with a yearly change of 78.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.