Agricultural and Biological Sciences
4 years ago

PCA outperforms CFA in stability and accuracy of loadings.

SSRN Electronic Journal
Common Factor Analysis versus Principal Component Analysis: A Comparison of Loadings by Means of Simulations
Joost de Winter, Dimitra Dodou

Paper Summary

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Common factor analysis (CFA) and principal component analysis (PCA) were compared using simulations. PCA loadings were found to be higher and more stable than CFA loadings. PCA loadings showed weak correlation with true factor loadings for different types of distortions. The differences between CFA and PCA were consistent across various factors like sample sizes and types of analysis used.