UNITED vs Westlake Which Outperforms?

United and Westlake stocks are two companies in the competitive financial market, each offering unique investment opportunities for potential investors. While United stock is known for its stability and long-term growth potential, Westlake stock is more volatile but has the potential for high returns. Both companies have a strong market presence and experienced management teams, making them attractive options for investors seeking to diversify their portfolios. Understanding the differences between these two stocks is essential for making informed investment decisions.

UNITED or Westlake?

When comparing UNITED and Westlake, 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 Westlake.

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 4.77%, while Westlake has a dividend yield of 1.56%. 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, Westlake reports a 5-year dividend growth of 13.25% year and a payout ratio of 267.35%.

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 49.19 and Westlake's P/E ratio at 170.78. 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 1.34 while Westlake's P/B ratio is 1.57.

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 Westlake's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Westlake's ROE at 0.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥763.00 for UNITED and $129.54 for Westlake. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Westlake's prices fluctuated between $118.64 and $162.64, with a yearly change of 37.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.