Union vs Bayer Which Is More Profitable?

Union and Bayer are two well-established companies in the stock market, each with its own strengths and weaknesses. Union is known for its stability and consistent performance, making it a reliable choice for long-term investors. On the other hand, Bayer is a more dynamic company with a focus on innovation and growth potential. Investors must carefully consider factors such as market trends, financial performance, and company news when deciding between Union and Bayer stocks.

Union or Bayer?

When comparing Union and Bayer, 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 and Bayer.

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 has a dividend yield of 2.39%, while Bayer has a dividend yield of 0.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Union reports a 5-year dividend growth of 4.56% year and a payout ratio of -9.67%. On the other hand, Bayer reports a 5-year dividend growth of -10.74% year and a payout ratio of -13.52%.

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 P/E ratio at -4.01 and Bayer's P/E ratio at -5.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Union P/B ratio is 0.74 while Bayer's P/B ratio is 0.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Union has seen a 5-year revenue growth of -0.03%, while Bayer's is 3.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Union's ROE at -16.78% and Bayer's ROE at -2.61%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩5120.00 for Union and $5.14 for Bayer. Over the past year, Union's prices ranged from ₩3360.00 to ₩6580.00, with a yearly change of 95.83%. Bayer's prices fluctuated between $4.94 and $9.79, with a yearly change of 98.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.