Capcom vs Sony Which Is a Smarter Choice?

Capcom and Sony are two leading players in the gaming industry, known for their popular franchises and cutting-edge technology. As competitors in the market, the performance of their stocks is closely monitored by investors. Capcom's stocks have seen steady growth in recent years, driven by successful game releases and strong financial performance. On the other hand, Sony's stocks have also experienced fluctuations due to shifts in the industry and changes in consumer preferences. This comparison between Capcom and Sony's stocks offers valuable insights into the gaming market and investment opportunities.

Capcom or Sony?

When comparing Capcom and Sony, 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 Sony.

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 Sony has a dividend yield of 1.43%. 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, Sony reports a 5-year dividend growth of 0.00% year and a payout ratio of 10.57%.

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 Sony's P/E ratio at 3.64. 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 Sony's P/B ratio is 0.46.

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 Sony's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Capcom's ROE at 18.52% and Sony's ROE at 13.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.50 for Capcom and $18.89 for Sony. Over the past year, Capcom's prices ranged from $7.73 to $12.20, with a yearly change of 57.83%. Sony's prices fluctuated between $15.02 and $20.67, with a yearly change of 37.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.