West vs Central Which Offers More Value?

When it comes to investing in the stock market, a common debate arises between West and Central stocks. West stocks typically refer to companies based in the United States, Europe, and other developed Western countries, which are known for their stability and growth potential. On the other hand, Central stocks encompass companies based in emerging markets in Central and Eastern Europe, Asia, and Africa, offering higher potential returns but also increased risk. Understanding the differences between West and Central stocks is essential for investors looking to diversify their portfolios and maximize their returns.

West or Central?

When comparing West and Central, 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 Central.

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 Central has a dividend yield of -%. 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, Central reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Central's P/E ratio at -278.55. 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 Central's P/B ratio is 44.92.

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 Central's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with West's ROE at 22.26% and Central's ROE at -14.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2020.00 for West and HK$7.94 for Central. Over the past year, West's prices ranged from ¥1923.00 to ¥3580.00, with a yearly change of 86.17%. Central's prices fluctuated between HK$4.24 and HK$9.99, with a yearly change of 135.61%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.