ASML vs Nikon Which Should You Buy?

ASML and Nikon are two leading companies in the semiconductor equipment industry, known for their advanced technology and innovative solutions. Both companies have seen significant growth and success in recent years, with ASML dominating the market with its market-leading lithography machines, while Nikon has a strong presence in the precision equipment sector. Investors interested in the semiconductor industry may find both ASML and Nikon stocks attractive options for their portfolios, given their track record of performance and potential for future growth.

ASML or Nikon?

When comparing ASML and Nikon, 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 Nikon.

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 0.89%, while Nikon has a dividend yield of -%. 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, Nikon reports a 5-year dividend growth of 0.00% year and a payout ratio of 52.74%.

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 38.84 and Nikon's P/E ratio at 17.85. 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 16.65 while Nikon's P/B ratio is 0.83.

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 Nikon's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and Nikon's ROE at 4.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $716.22 for ASML and $10.92 for Nikon. Over the past year, ASML's prices ranged from $645.45 to $1110.09, with a yearly change of 71.99%. Nikon's prices fluctuated between $9.29 and $13.07, with a yearly change of 40.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.