Will vs LPA Which Is a Better Investment?

When it comes to deciding how to pass on your assets after your passing, two of the most common methods are through a Will or a Living Trust, also known as a Living Power of Attorney (LPA). While both options have their advantages and disadvantages, the main difference lies in when they take effect. A Will only becomes active after your passing, whereas an LPA allows you to designate a trusted individual to manage your assets in the event of your incapacity. Understanding the differences between Will and LPA stocks can help you make an informed decision on how best to protect your assets and provide for your loved ones.

Will or LPA?

When comparing Will and LPA, 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 Will and LPA.

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. Will has a dividend yield of 4.41%, while LPA has a dividend yield of 1.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Will reports a 5-year dividend growth of 0.00% year and a payout ratio of 47.76%. On the other hand, LPA 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 Will P/E ratio at 10.72 and LPA's P/E ratio at 8.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Will P/B ratio is 1.30 while LPA's P/B ratio is 0.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Will has seen a 5-year revenue growth of 0.31%, while LPA's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Will's ROE at 12.70% and LPA's ROE at 6.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥995.00 for Will and £63.65 for LPA. Over the past year, Will's prices ranged from ¥889.00 to ¥1238.00, with a yearly change of 39.26%. LPA's prices fluctuated between £52.00 and £90.00, with a yearly change of 73.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.