WAC vs AMP Which Is More Attractive?

WAC vs AMP stocks represent two popular investment options in the financial markets. WAC, or weighted average cost of capital, is a financial metric used to evaluate the cost of a company’s capital structure. On the other hand, AMP, or actively managed portfolios, are investment strategies where fund managers make active buy and sell decisions to outperform the market. Both WAC and AMP stocks offer unique benefits and risks for investors looking to grow their portfolios and achieve their financial goals.

WAC or AMP?

When comparing WAC and AMP, 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 WAC and AMP.

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. WAC has a dividend yield of -%, while AMP has a dividend yield of 3.09%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. WAC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, AMP reports a 5-year dividend growth of 0.00% year and a payout ratio of 103.31%.

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 WAC P/E ratio at 17.56 and AMP's P/E ratio at 33.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. WAC P/B ratio is 0.56 while AMP's P/B ratio is 1.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, WAC has seen a 5-year revenue growth of 0.11%, while AMP's is -0.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with WAC's ROE at 3.62% and AMP's ROE at 3.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.05 for WAC and $0.66 for AMP. Over the past year, WAC's prices ranged from HK$0.04 to HK$0.39, with a yearly change of 983.33%. AMP's prices fluctuated between $0.58 and $0.94, with a yearly change of 62.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.