Capcom vs Konami Which Outperforms?

Capcom and Konami are two of the biggest names in the video game industry, known for creating iconic franchises such as Street Fighter, Resident Evil, Metal Gear Solid, and Castlevania. Both companies have a strong presence in the gaming market and have consistently produced successful titles over the years. Investors often compare the stocks of Capcom and Konami due to their similar business models and competition in the industry. Analyzing the performance of their stocks can provide valuable insights into the health and potential growth of these gaming giants.

Capcom or Konami?

When comparing Capcom and Konami, 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 Capcom and Konami.

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. Capcom has a dividend yield of 1.32%, while Konami has a dividend yield of 0.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Capcom reports a 5-year dividend growth of 0.47% year and a payout ratio of 42.44%. On the other hand, Konami reports a 5-year dividend growth of 0.00% year and a payout ratio of 25.81%.

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 Capcom P/E ratio at 20.49 and Konami's P/E ratio at 14.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Capcom P/B ratio is 3.63 while Konami's P/B ratio is 2.29.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Capcom has seen a 5-year revenue growth of -0.31%, while Konami's is 0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Capcom's ROE at 18.52% and Konami's ROE at 15.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.19 for Capcom and $49.20 for Konami. Over the past year, Capcom's prices ranged from $7.73 to $12.20, with a yearly change of 57.83%. Konami's prices fluctuated between $39.66 and $49.80, with a yearly change of 25.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.