Venture vs Compass Which Is a Better Investment?

Venture and Compass stocks represent two different approaches to investing in the stock market. Venture stocks are typically associated with high-risk, high-reward investments in innovative and fast-growing companies. These stocks have the potential for substantial returns but also come with significant volatility and uncertainty. On the other hand, Compass stocks are more conservative investments in established companies with stable earnings and dividends. While they may offer lower growth potential, Compass stocks provide investors with a sense of security and stability in their portfolio. It is essential for investors to carefully consider their risk tolerance and investment goals when deciding between Venture and Compass stocks.

Venture or Compass?

When comparing Venture and Compass, 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 Venture and Compass.

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. Venture has a dividend yield of 5.45%, while Compass has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Venture reports a 5-year dividend growth of -1.29% year and a payout ratio of 85.85%. On the other hand, Compass reports a 5-year dividend growth of 0.00% year and a payout ratio of -14.93%.

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 Venture P/E ratio at 77.66 and Compass's P/E ratio at -17.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Venture P/B ratio is 6.91 while Compass's P/B ratio is 8.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Venture has seen a 5-year revenue growth of -0.83%, while Compass's is 3.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Venture's ROE at 8.94% and Compass's ROE at -49.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $46.22 for Venture and $6.72 for Compass. Over the past year, Venture's prices ranged from $44.90 to $57.63, with a yearly change of 28.35%. Compass's prices fluctuated between $2.78 and $7.69, with a yearly change of 176.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.