Altium vs Zuken Which Is More Reliable?

Altium and Zuken are two leading companies in the field of electronic design automation (EDA) software, catering to the needs of engineers and designers in the electronics industry. Both companies offer a range of products and services that help streamline the design process and bring products to market faster. Investors looking to capitalize on the growing demand for EDA software may consider investing in either Altium or Zuken stocks. By comparing key financial metrics, market positioning, and growth prospects, investors can make informed decisions on which stock may offer better returns in the long term.

Altium or Zuken?

When comparing Altium and Zuken, 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 Altium and Zuken.

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. Altium has a dividend yield of 0.67%, while Zuken has a dividend yield of 1.56%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Altium reports a 5-year dividend growth of 14.87% year and a payout ratio of 81.10%. On the other hand, Zuken reports a 5-year dividend growth of 15.81% year and a payout ratio of 0.00%.

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 Altium P/E ratio at 68.93 and Zuken's P/E ratio at 22.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Altium P/B ratio is 18.96 while Zuken's P/B ratio is 2.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Altium has seen a 5-year revenue growth of 0.84%, while Zuken's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Altium's ROE at 27.99% and Zuken's ROE at 9.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$68.30 for Altium and ¥3730.00 for Zuken. Over the past year, Altium's prices ranged from A$36.04 to A$68.33, with a yearly change of 89.59%. Zuken's prices fluctuated between ¥3020.00 and ¥4855.00, with a yearly change of 60.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.