ASML vs NVIDIA Which Is More Lucrative?

ASML and NVIDIA are two prominent companies in the technology sector that have gained significant attention from investors in recent years. ASML, a Dutch semiconductor equipment manufacturer, is known for its cutting-edge lithography machines used in the production of microchips. On the other hand, NVIDIA, an American technology company, is a leader in graphics processing units (GPUs) and artificial intelligence. Both companies have seen impressive growth in their stock prices, but each offers unique investment opportunities based on their respective strengths and market positions.

ASML or NVIDIA?

When comparing ASML and NVIDIA, 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 NVIDIA.

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 1.14%, while NVIDIA has a dividend yield of 0.03%. 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, NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%.

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 35.76 and NVIDIA's P/E ratio at 67.35. 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 15.33 while NVIDIA's P/B ratio is 61.39.

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 1.72%, while NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and NVIDIA's ROE at 115.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $661.94 for ASML and $143.57 for NVIDIA. Over the past year, ASML's prices ranged from $648.27 to $1110.09, with a yearly change of 71.24%. NVIDIA's prices fluctuated between $45.01 and $149.77, with a yearly change of 232.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.