WINDMILL vs Solar Which Is a Smarter Choice?

Windmill and solar stocks have become increasingly popular investment options in recent years as the world shifts towards renewable energy sources. Windmills harness the power of wind to generate electricity, while solar panels convert sunlight into energy. Both industries have seen significant growth as governments and companies prioritize sustainability and environmental consciousness. Investors are often torn between windmill and solar stocks, weighing factors such as cost, efficiency, and scalability. Understanding the differences between these two renewable energy sources is crucial for making informed investment decisions.

WINDMILL or Solar?

When comparing WINDMILL and Solar, 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 WINDMILL and Solar.

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. WINDMILL has a dividend yield of -%, while Solar has a dividend yield of 10.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. WINDMILL reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Solar reports a 5-year dividend growth of 35.10% year and a payout ratio of 142.21%.

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 WINDMILL P/E ratio at 5.96 and Solar's P/E ratio at 14.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. WINDMILL P/B ratio is 0.06 while Solar's P/B ratio is 1.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, WINDMILL has seen a 5-year revenue growth of -0.49%, while Solar's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with WINDMILL's ROE at 1.07% and Solar's ROE at 8.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.13 for WINDMILL and kr297.50 for Solar. Over the past year, WINDMILL's prices ranged from HK$0.13 to HK$1.48, with a yearly change of 1065.35%. Solar's prices fluctuated between kr280.50 and kr479.00, with a yearly change of 70.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.