Amano vs Nomura Which Performs Better?

Amano Corporation and Nomura Holdings, Inc. are two well-known companies in the Japanese stock market with distinctly different business models. Amano is a leading provider of time management and security solutions, while Nomura is one of the largest financial services firms in Japan. Both companies have their own strengths and weaknesses, making them appealing investment options for different types of investors. Let's explore the key factors that set Amano and Nomura apart in the stock market.

Amano or Nomura?

When comparing Amano and Nomura, 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 Amano and Nomura.

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. Amano has a dividend yield of 3.34%, while Nomura has a dividend yield of 1.35%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amano reports a 5-year dividend growth of 15.26% year and a payout ratio of 66.38%. On the other hand, Nomura reports a 5-year dividend growth of 0.00% year and a payout ratio of 8.78%.

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 Amano P/E ratio at 21.19 and Nomura's P/E ratio at 9.83. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amano P/B ratio is 2.39 while Nomura's P/B ratio is 0.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amano has seen a 5-year revenue growth of 0.22%, while Nomura's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amano's ROE at 11.68% and Nomura's ROE at 8.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥4272.00 for Amano and $5.94 for Nomura. Over the past year, Amano's prices ranged from ¥3215.00 to ¥4531.00, with a yearly change of 40.93%. Nomura's prices fluctuated between $4.30 and $6.62, with a yearly change of 53.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.