Waste Management vs XP Power Which Is More Lucrative?

Waste Management and XP Power are two companies operating in vastly different sectors, yet both hold significant potential for investors. Waste Management focuses on providing comprehensive waste management services, benefiting from the growing emphasis on sustainability and recycling. XP Power, on the other hand, is a leading provider of power solutions for a wide range of industries. Both companies offer solid growth prospects and stable financial performance, making them attractive investment options for those looking to diversify their portfolio.

Waste Management or XP Power?

When comparing Waste Management and XP Power, 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 Waste Management and XP Power.

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. Waste Management has a dividend yield of 1.4%, while XP Power has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 45.06%. On the other hand, XP Power reports a 5-year dividend growth of 1.55% year and a payout ratio of -23.38%.

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 Waste Management P/E ratio at 32.59 and XP Power's P/E ratio at -12.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Waste Management P/B ratio is 10.79 while XP Power's P/B ratio is 1.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Waste Management has seen a 5-year revenue growth of 0.45%, while XP Power's is 0.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Waste Management's ROE at 35.91% and XP Power's ROE at -14.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $214.00 for Waste Management and $15.25 for XP Power. Over the past year, Waste Management's prices ranged from $173.01 to $230.39, with a yearly change of 33.17%. XP Power's prices fluctuated between $11.75 and $19.24, with a yearly change of 63.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.