Capcom vs Midway Which Should You Buy?

Capcom and Midway were two prominent companies in the video game industry known for creating popular franchises such as Street Fighter and Mortal Kombat, respectively. In the late 1990s, both companies decided to enter the stock market, allowing investors to own a stake in their success. As competitors, their stock performance was closely monitored by industry analysts and gamers alike. This article will analyze the historical performance and potential growth opportunities of Capcom vs Midway stocks.

Capcom or Midway?

When comparing Capcom and Midway, 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 Midway.

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 0.84%, while Midway has a dividend yield of 24.38%. 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, Midway reports a 5-year dividend growth of 0.00% year and a payout ratio of 508.97%.

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 19.64 and Midway's P/E ratio at 99.90. 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 3.48 while Midway's P/B ratio is 0.59.

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 Midway'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 Midway's ROE at 0.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.50 for Capcom and A$0.79 for Midway. Over the past year, Capcom's prices ranged from $7.73 to $12.20, with a yearly change of 57.83%. Midway's prices fluctuated between A$0.63 and A$1.18, with a yearly change of 87.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.