VIA vs ARB Which Should You Buy?

VIA and ARB stocks represent two different investment opportunities within the stock market. VIA, or Volatility Index Arbitrage, involves trading on the volatility index to profit from market fluctuations, while ARB, or Arbitrage, involves buying and selling the same asset in different markets to exploit price discrepancies. Both strategies can offer potentially high returns but also come with inherent risks. Understanding the differences between VIA and ARB stocks is crucial for investors looking to diversify their portfolios and maximize profits.

VIA or ARB?

When comparing VIA and ARB, 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 VIA and ARB.

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. VIA has a dividend yield of -%, while ARB has a dividend yield of 1.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. VIA reports a 5-year dividend growth of 0.00% year and a payout ratio of 76.19%. On the other hand, ARB reports a 5-year dividend growth of 10.88% year and a payout ratio of 43.55%.

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 VIA P/E ratio at 15.13 and ARB's P/E ratio at 32.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. VIA P/B ratio is 4.65 while ARB's P/B ratio is 5.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, VIA has seen a 5-year revenue growth of -0.52%, while ARB's is 0.53%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with VIA's ROE at 32.17% and ARB's ROE at 15.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥114.00 for VIA and A$40.79 for ARB. Over the past year, VIA's prices ranged from ¥99.00 to ¥255.00, with a yearly change of 157.58%. ARB's prices fluctuated between A$30.25 and A$48.11, with a yearly change of 59.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.