Canon vs Olympus

Canon and Olympus are two well-known brands in the world of photography, each with a loyal following of enthusiasts. Both companies offer a range of cameras, lenses, and accessories that cater to the diverse needs of photographers. While Canon is a giant in the industry known for its high-quality DSLRs and mirrorless cameras, Olympus has carved out a niche with its compact system cameras and advanced features. Investors interested in the photography sector may find opportunities in both Canon and Olympus stocks, but understanding the differences between the two companies is essential for making informed investment decisions.

Canon or Olympus?

When comparing Canon and Olympus, 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 Olympus.

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 2.64%, while Olympus has a dividend yield of 0.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canon reports a 5-year dividend growth of 0.00% year and a payout ratio of 47.55%. On the other hand, Olympus reports a 5-year dividend growth of 0.00% year and a payout ratio of 126.48%.

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 16.97 and Olympus's P/E ratio at 190.95. 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 1.40 while Olympus's P/B ratio is 4.01.

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 Olympus's is 0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canon's ROE at 8.59% and Olympus's ROE at 2.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.71 for Canon and $15.70 for Olympus. Over the past year, Canon's prices ranged from $22.53 to $35.52, with a yearly change of 57.66%. Olympus's prices fluctuated between $12.49 and $18.50, with a yearly change of 48.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.