we define value stocks as those common stocks issued by companies that analysts deem to be undervalued and likely worth more than current fair market value. These stocks typically pay dividends. Growth stocks represent companies that focus on continuous growth faster than the overall market and typically have higher earnings represented by higher P/E ratios and no dividend payouts. Which investment do you prefer and why? Think about dividends vs capital gains. Also, trends make headlines in the industry arguing the track record of value of a preceding decade or growth in comparison.