TK vs K Which Is More Profitable?

TK vs K stocks refer to the comparison between two different types of stocks: growth stocks (K stocks) and value stocks (TK stocks). Growth stocks are those of companies with a high potential for earnings growth, typically trading at a higher price-to-earnings ratio. Value stocks, on the other hand, are those that are considered undervalued by the market, trading at a lower price relative to their fundamentals. Understanding the differences between these two types of stocks is crucial for investors looking to build a diversified portfolio.

TK or K?

When comparing TK and K, 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 TK and K.

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. TK has a dividend yield of 5.67%, while K has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TK reports a 5-year dividend growth of -8.73% year and a payout ratio of 73.79%. On the other hand, K 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 TK P/E ratio at 7.33 and K's P/E ratio at -1.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TK P/B ratio is 1.07 while K's P/B ratio is -0.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TK has seen a 5-year revenue growth of -0.15%, while K's is -0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TK's ROE at 14.07% and K's ROE at 22.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$2.00 for TK and HK$0.27 for K. Over the past year, TK's prices ranged from HK$1.30 to HK$2.18, with a yearly change of 67.69%. K's prices fluctuated between HK$0.23 and HK$1.50, with a yearly change of 552.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.