D-Link vs Ubiquiti Which Should You Buy?

D-Link and Ubiquiti are two well-known players in the networking industry, offering a range of products and solutions for both consumers and businesses. D-Link has a long-standing history in the market, known for its user-friendly interfaces and affordable prices. On the other hand, Ubiquiti has gained a reputation for its high-performance, reliable networking equipment favored by professionals. Both companies have seen fluctuations in their stock prices in recent years, attracting attention from investors looking to capitalize on the booming tech industry.

D-Link or Ubiquiti?

When comparing D-Link and Ubiquiti, 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 D-Link and Ubiquiti.

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. D-Link has a dividend yield of 2.51%, while Ubiquiti has a dividend yield of 0.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. D-Link reports a 5-year dividend growth of 0.00% year and a payout ratio of 270.25%. On the other hand, Ubiquiti reports a 5-year dividend growth of 36.85% year and a payout ratio of 37.19%.

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 D-Link P/E ratio at 72.12 and Ubiquiti's P/E ratio at 53.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. D-Link P/B ratio is 1.40 while Ubiquiti's P/B ratio is 110.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, D-Link has seen a 5-year revenue growth of -0.18%, while Ubiquiti's is 1.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with D-Link's ROE at 1.94% and Ubiquiti's ROE at 532.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$21.20 for D-Link and $341.30 for Ubiquiti. Over the past year, D-Link's prices ranged from NT$15.20 to NT$24.15, with a yearly change of 58.88%. Ubiquiti's prices fluctuated between $104.24 and $366.34, with a yearly change of 251.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.