Canon vs HP Which Is More Promising?

Canon and HP are two renowned multinational corporations in the technology industry, known for their high-quality products and services. The competition between Canon and HP stocks is fierce, with each company offering unique advantages to investors. Canon is a leader in the imaging and optical products market, while HP specializes in developing innovative printers and personal computers. Both companies have a strong presence in the stock market, making them attractive options for investors looking to capitalize on the ever-evolving technology sector.

Canon or HP?

When comparing Canon and HP, 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 Canon and HP.

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. Canon has a dividend yield of 2.72%, while HP has a dividend yield of 3.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canon reports a 5-year dividend growth of -9.21% year and a payout ratio of 47.55%. On the other hand, HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 38.74%.

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 Canon P/E ratio at 16.83 and HP's P/E ratio at 11.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canon P/B ratio is 1.39 while HP's P/B ratio is 11.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canon has seen a 5-year revenue growth of 0.14%, while HP's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canon's ROE at 8.59% and HP's ROE at -1122.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.41 for Canon and $34.34 for HP. Over the past year, Canon's prices ranged from $24.82 to $35.52, with a yearly change of 43.11%. HP's prices fluctuated between $27.43 and $39.80, with a yearly change of 45.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.