Canon vs Ricoh Which Is a Smarter Choice?

Canon and Ricoh are two widely recognized companies in the camera and printing industry, known for their high-quality products and innovative technologies. Both companies have a strong presence in the market, but their stocks have performed differently over the years. Canon, with its iconic brand and diversified product offerings, has been a popular choice for investors. On the other hand, Ricoh, known for its advanced imaging solutions, has also been gaining traction in the market. This article will compare and analyze the performance of Canon and Ricoh stocks to help investors make informed decisions.

Canon or Ricoh?

When comparing Canon and Ricoh, 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 Ricoh.

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 2.69%, while Ricoh has a dividend yield of 0.94%. 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, Ricoh reports a 5-year dividend growth of 3.83% year and a payout ratio of 50.54%.

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 16.76 and Ricoh's P/E ratio at 25.14. 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 1.38 while Ricoh's P/B ratio is 1.01.

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 Ricoh's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canon's ROE at 8.59% and Ricoh's ROE at 4.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $33.00 for Canon and $11.68 for Ricoh. Over the past year, Canon's prices ranged from $24.82 to $35.52, with a yearly change of 43.11%. Ricoh's prices fluctuated between $6.96 and $12.00, with a yearly change of 72.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.