Watts vs HP Which Is Stronger?

Watts vs HP stocks are a comparison between two popular measures of power in the stock market. Watts represent the actual power consumption of a stock, while HP (horsepower) is a measurement of the stock's ability to perform work. Investors often debate which measure is more indicative of a stock's potential for growth and profitability. Understanding the differences between watts and horsepower in the context of stocks can help investors make more informed decisions when it comes to their portfolios.

Watts or HP?

When comparing Watts and HP, 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 Watts and HP.

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. Watts has a dividend yield of 0.73%, while HP has a dividend yield of 3.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Watts reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 37.71%.

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 Watts P/E ratio at 10.05 and HP's P/E ratio at 12.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Watts P/B ratio is 0.73 while HP's P/B ratio is -26.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Watts has seen a 5-year revenue growth of 0.20%, while HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Watts's ROE at 7.44% and HP's ROE at -226.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥685.00 for Watts and $36.80 for HP. Over the past year, Watts's prices ranged from ¥529.00 to ¥859.00, with a yearly change of 62.38%. HP's prices fluctuated between $27.43 and $39.52, with a yearly change of 44.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.