DexCom vs Nestlé Which Is More Profitable?

DexCom and Nestlé are two prominent companies in the healthcare and consumer goods industries respectively. DexCom specializes in continuous glucose monitoring systems for diabetes management, while Nestlé is a global leader in food and beverage products. Both companies have seen fluctuations in their stock prices due to various factors such as market trends, product launches, and financial performance. Investors interested in these stocks will need to carefully evaluate the companies' fundamentals and growth potential to make informed investment decisions.

DexCom or Nestlé?

When comparing DexCom and Nestlé, 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 DexCom and Nestlé.

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. DexCom has a dividend yield of -%, while Nestlé has a dividend yield of 3.95%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DexCom reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Nestlé reports a 5-year dividend growth of 4.73% year and a payout ratio of 69.76%.

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 DexCom P/E ratio at 45.22 and Nestlé's P/E ratio at 17.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DexCom P/B ratio is 15.56 while Nestlé's P/B ratio is 6.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DexCom has seen a 5-year revenue growth of 2.21%, while Nestlé's is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DexCom's ROE at 31.20% and Nestlé's ROE at 32.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $77.18 for DexCom and $85.70 for Nestlé. Over the past year, DexCom's prices ranged from $62.34 to $142.00, with a yearly change of 127.78%. Nestlé's prices fluctuated between $85.01 and $117.55, with a yearly change of 38.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.