UNITED vs Coty Which Is a Better Investment?

United and Coty are two prominent companies in the stock market with unique backgrounds and market positions. United, a global airline company, is a leader in the industry, providing reliable and efficient air travel services worldwide. On the other hand, Coty is a well-known beauty and cosmetics company, offering a wide range of popular brands and products. Both companies have experienced fluctuations in their stock prices in recent months, presenting opportunities and challenges for investors. This comparison will analyze the performance and potential of United and Coty stocks to help investors make informed decisions.

UNITED or Coty?

When comparing UNITED and Coty, 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 UNITED and Coty.

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. UNITED has a dividend yield of 2.97%, while Coty has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of 6.43% year and a payout ratio of 0.00%. On the other hand, Coty reports a 5-year dividend growth of 0.00% year and a payout ratio of 7.85%.

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 UNITED P/E ratio at 51.89 and Coty's P/E ratio at 38.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UNITED P/B ratio is 1.42 while Coty's P/B ratio is 1.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UNITED has seen a 5-year revenue growth of -0.46%, while Coty's is -0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Coty's ROE at 4.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥801.00 for UNITED and $7.29 for Coty. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Coty's prices fluctuated between $6.93 and $13.30, with a yearly change of 91.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.