Cricut vs Light Which Is More Profitable?

When it comes to crafting and DIY projects, choosing the right materials can make all the difference. Two popular options for creating intricate designs and projects are Cricut and light stocks. Cricut is a cutting machine that allows for precision cutting of materials such as paper, vinyl, and fabric, while light stocks are versatile paper materials that come in various thicknesses and finishes. Understanding the differences between these two options can help you determine which is best suited for your crafting needs.

Cricut or Light?

When comparing Cricut and Light, 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 Cricut and Light.

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. Cricut has a dividend yield of 8.38%, while Light has a dividend yield of 0.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cricut reports a 5-year dividend growth of 0.00% year and a payout ratio of 177.01%. On the other hand, Light 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 Cricut P/E ratio at 20.62 and Light's P/E ratio at -8.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cricut P/B ratio is 2.69 while Light's P/B ratio is 0.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cricut has seen a 5-year revenue growth of 1.30%, while Light's is -0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cricut's ROE at 12.37% and Light's ROE at -7.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.85 for Cricut and $0.75 for Light. Over the past year, Cricut's prices ranged from $4.43 to $8.40, with a yearly change of 89.62%. Light's prices fluctuated between $0.60 and $1.60, with a yearly change of 166.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.