Canon vs Xerox Which Performs Better?

Canon and Xerox are well-known companies in the printing and imaging industry, both offering a range of products and services to consumers and businesses alike. While Canon is a Japanese multinational corporation with a strong presence in the global market, Xerox is an American company known for its innovative technologies and solutions. Investors often compare the performance of these two companies, looking at factors such as revenue, growth potential, and market share to make informed decisions about their stock investments.

Canon or Xerox?

When comparing Canon and Xerox, 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 Xerox.

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 Xerox has a dividend yield of 11.39%. 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, Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.38%.

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 Xerox's P/E ratio at -0.80. 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 Xerox's P/B ratio is 0.72.

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 Xerox's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canon's ROE at 8.59% and Xerox's ROE at -57.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.41 for Canon and $8.54 for Xerox. Over the past year, Canon's prices ranged from $24.82 to $35.52, with a yearly change of 43.11%. Xerox's prices fluctuated between $8.02 and $19.78, with a yearly change of 146.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.