ASML vs Canon Which Is Superior?

ASML and Canon are two prominent companies in the technology sector that are known for their innovation in the semiconductor and imaging industries, respectively. Both companies have a strong presence in the global market and have a solid track record of performance. ASML is known for its advanced lithography technology, while Canon is a leader in digital imaging solutions. Investors often compare the stocks of these two companies to determine which one offers the best investment opportunity. Let's explore the key factors that differentiate ASML and Canon stocks in this analysis.

ASML or Canon?

When comparing ASML and Canon, 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 ASML and Canon.

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. ASML has a dividend yield of 0.9%, while Canon has a dividend yield of 2.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%. On the other hand, Canon reports a 5-year dividend growth of -9.21% year and a payout ratio of 47.55%.

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 ASML P/E ratio at 38.02 and Canon's P/E ratio at 16.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASML P/B ratio is 16.31 while Canon's P/B ratio is 1.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASML has seen a 5-year revenue growth of 1.71%, while Canon's is 0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and Canon's ROE at 8.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $705.65 for ASML and $33.16 for Canon. Over the past year, ASML's prices ranged from $645.45 to $1110.09, with a yearly change of 71.99%. Canon's prices fluctuated between $24.82 and $35.52, with a yearly change of 43.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.