SU vs Southern Which Outperforms?

When it comes to investing in the stock market, choosing between companies like SU (Suncor Energy) and Southern Company can be a challenging decision for many investors. Both companies operate in the energy sector, but they have unique strengths and weaknesses that can impact their performance and potential for growth. By understanding the key differences and similarities between SU and Southern stocks, investors can make more informed decisions about where to allocate their resources in order to achieve their financial goals.

SU or Southern?

When comparing SU and Southern, 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 SU and Southern.

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. SU has a dividend yield of -%, while Southern has a dividend yield of 3.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SU reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Southern reports a 5-year dividend growth of 3.16% year and a payout ratio of 63.19%.

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 SU P/E ratio at 16.18 and Southern's P/E ratio at 19.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SU P/B ratio is 1.75 while Southern's P/B ratio is 2.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SU has seen a 5-year revenue growth of -0.94%, while Southern's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SU's ROE at 13.36% and Southern's ROE at 14.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.59 for SU and $83.18 for Southern. Over the past year, SU's prices ranged from $0.98 to $5.86, with a yearly change of 497.35%. Southern's prices fluctuated between $65.80 and $94.45, with a yearly change of 43.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.