Union Pacific vs Central Pacific Financial Which Should You Buy?

Union Pacific and Central Pacific are two major players in the financial sector, both known for their stability and long-standing reputation in the market. Union Pacific offers a diversified portfolio of financial services, including banking, investment management, and insurance, while Central Pacific focuses on mortgage lending and retail banking. Investors often compare the performance of these two companies to determine which is the better investment option. Both companies have shown consistent growth and profitability, making them valuable assets in any investment portfolio.

Union Pacific or Central Pacific Financial?

When comparing Union Pacific and Central Pacific Financial, 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 Union Pacific and Central Pacific Financial.

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. Union Pacific has a dividend yield of 2.23%, while Central Pacific Financial has a dividend yield of 3.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Union Pacific reports a 5-year dividend growth of 11.19% year and a payout ratio of 48.15%. On the other hand, Central Pacific Financial reports a 5-year dividend growth of 4.87% year and a payout ratio of 49.42%.

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 Union Pacific P/E ratio at 21.70 and Central Pacific Financial's P/E ratio at 14.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Union Pacific P/B ratio is 8.69 while Central Pacific Financial's P/B ratio is 1.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Union Pacific has seen a 5-year revenue growth of 0.30%, while Central Pacific Financial's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Union Pacific's ROE at 41.79% and Central Pacific Financial's ROE at 10.98%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $231.79 for Union Pacific and $30.75 for Central Pacific Financial. Over the past year, Union Pacific's prices ranged from $218.55 to $258.66, with a yearly change of 18.35%. Central Pacific Financial's prices fluctuated between $18.00 and $33.25, with a yearly change of 84.72%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.