CGI vs Toei Animation Which Is More Promising?

CGI (computer-generated imagery) and Toei Animation are two major players in the animation industry, each with their own unique strengths and weaknesses. While CGI offers cutting-edge technology and the ability to create visually stunning animations, Toei Animation is known for its long-standing reputation and beloved classic animation styles. Both companies have seen fluctuations in their stock prices in recent years, with investors weighing the potential impact of CGI advancements on traditional animation techniques. Understanding the dynamics between these two competitors is crucial for investors looking to navigate the ever-evolving animation market.

CGI or Toei Animation?

When comparing CGI and Toei Animation, 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 CGI and Toei Animation.

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. CGI has a dividend yield of 0.07%, while Toei Animation has a dividend yield of 0.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CGI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Toei Animation reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 CGI P/E ratio at 22.08 and Toei Animation's P/E ratio at 36.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CGI P/B ratio is 4.15 while Toei Animation's P/B ratio is 5.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CGI has seen a 5-year revenue growth of 0.48%, while Toei Animation's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CGI's ROE at 19.29% and Toei Animation's ROE at 15.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.32 for CGI and ¥3680.00 for Toei Animation. Over the past year, CGI's prices ranged from $96.92 to $118.89, with a yearly change of 22.67%. Toei Animation's prices fluctuated between ¥2145.00 and ¥4086.00, with a yearly change of 90.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.