Comparing two stocks side by side
The duel: valuation, profitability, growth and balance sheet, with a point per row.
You will learn
- Two ways to open a comparison
- Which rows are scored and which are shown for information only
- Why the loser on paper can be the better buy
Transcript
Lesson twelve: comparing two stocks side by side. Useful when you are choosing between two companies in the same industry.
Open any stock page and scroll to 'compare with another stock', or go straight to the compare page and type two names. You get a duel: valuation, profitability, growth, balance sheet, with a point for the winner of each row.
Rows that are not comparable, like dividend per share in different currencies, are shown but not scored. And where one company has big one-off items, the P/E without them is scored instead of the reported one.
A duel is a starting point, not a verdict: the loser on paper can be the better buy if the price already reflects it. Which brings us to the market as a whole.