West vs Alcoa Which Is Stronger?

West vs Alcoa stocks comparison reveals two giants in the industrial sector with contrasting performances. While West Corporation is a leading provider of communication and network infrastructure solutions, Alcoa Corporation is a global leader in aluminum production. Both companies have faced challenges in recent years, with West struggling to adapt to changing market trends and Alcoa navigating trade tensions and global demand fluctuations. Investors looking to diversify their portfolios may find opportunities in both stocks, but careful analysis is recommended before making any investment decisions.

West or Alcoa?

When comparing West and Alcoa, 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 West and Alcoa.

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. West has a dividend yield of 3.19%, while Alcoa has a dividend yield of 1.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. West reports a 5-year dividend growth of 9.46% year and a payout ratio of 0.00%. On the other hand, Alcoa reports a 5-year dividend growth of 0.00% year and a payout ratio of -27.74%.

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 West P/E ratio at 12.30 and Alcoa's P/E ratio at -34.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. West P/B ratio is 2.55 while Alcoa's P/B ratio is 1.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, West has seen a 5-year revenue growth of -0.12%, while Alcoa's is -0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with West's ROE at 22.26% and Alcoa's ROE at -6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2020.00 for West and $43.28 for Alcoa. Over the past year, West's prices ranged from ¥1923.00 to ¥3580.00, with a yearly change of 86.17%. Alcoa's prices fluctuated between $23.80 and $46.55, with a yearly change of 95.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.