SRS vs DD Which Is a Better Investment?

SRS and DD stocks represent two distinct investment strategies with contrasting risk profiles. SRS, or systematic risk stocks, are those that are influenced by macroeconomic factors and tend to move in tandem with the overall market. On the other hand, DD, or idiosyncratic risk stocks, are those that are driven by company-specific factors and may provide diversification benefits to a portfolio. Understanding the differences between SRS and DD stocks is essential for investors looking to manage risk and optimize returns in their investment portfolios.

SRS or DD?

When comparing SRS and DD, 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 SRS and DD.

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. SRS has a dividend yield of 0.65%, while DD has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SRS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, DD 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 SRS P/E ratio at 23.58 and DD's P/E ratio at 7.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SRS P/B ratio is 2.95 while DD's P/B ratio is 2.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SRS has seen a 5-year revenue growth of 0.09%, while DD's is -0.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SRS's ROE at 12.92% and DD's ROE at 35.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1154.00 for SRS and ¥1303.00 for DD. Over the past year, SRS's prices ranged from ¥1035.00 to ¥1378.00, with a yearly change of 33.14%. DD's prices fluctuated between ¥1014.00 and ¥1644.00, with a yearly change of 62.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.