Cognex vs Keyence Which Is Stronger?

Cognex Corporation and Keyence Corporation are two leading companies in the machine vision and automation industry. Both companies specialize in producing advanced sensor and vision systems for a wide range of industrial applications. While Cognex is known for its innovative technology and strong market presence in the United States, Keyence has a dominant presence in the Asian market. Investors looking to capitalize on the growing demand for automation technologies may consider comparing the stocks of these two industry giants.

Cognex or Keyence?

When comparing Cognex and Keyence, 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 Cognex and Keyence.

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. Cognex has a dividend yield of 0.8%, while Keyence has a dividend yield of 0.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cognex reports a 5-year dividend growth of 9.03% year and a payout ratio of 57.82%. On the other hand, Keyence reports a 5-year dividend growth of 14.06% 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 Cognex P/E ratio at 73.05 and Keyence's P/E ratio at 41.72. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cognex P/B ratio is 4.15 while Keyence's P/B ratio is 5.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cognex has seen a 5-year revenue growth of 0.04%, while Keyence's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cognex's ROE at 5.87% and Keyence's ROE at 13.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $37.69 for Cognex and $426.00 for Keyence. Over the past year, Cognex's prices ranged from $34.79 to $53.13, with a yearly change of 52.72%. Keyence's prices fluctuated between $362.25 and $537.90, with a yearly change of 48.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.