WPG vs CAR Which Is More Promising?

WPG and CAR are two distinct stocks in the retail sector with contrasting performances in the market. While WPG, or Washington Prime Group, has faced challenges due to the impact of the pandemic on shopping centers, CAR, or Avis Budget Group, has seen growth as a result of the increased demand for rental cars. Investors interested in these stocks should carefully consider the unique factors affecting each company's financial health and future prospects before making investment decisions.

WPG or CAR?

When comparing WPG and CAR, 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 WPG and CAR.

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. WPG has a dividend yield of 5.0%, while CAR has a dividend yield of 1.82%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. WPG reports a 5-year dividend growth of 8.10% year and a payout ratio of 0.00%. On the other hand, CAR reports a 5-year dividend growth of 7.68% year and a payout ratio of 98.63%.

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 WPG P/E ratio at 12.82 and CAR's P/E ratio at 60.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. WPG P/B ratio is 1.35 while CAR's P/B ratio is 5.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, WPG has seen a 5-year revenue growth of 0.30%, while CAR's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with WPG's ROE at 10.48% and CAR's ROE at 8.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$69.90 for WPG and A$39.88 for CAR. Over the past year, WPG's prices ranged from NT$69.00 to NT$102.50, with a yearly change of 48.55%. CAR's prices fluctuated between A$28.14 and A$42.70, with a yearly change of 51.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.