Edifier Technology vs Logitech International Which Should You Buy?

Edifier Technology and Logitech International are both well-known companies in the audio technology industry, offering a range of high-quality products such as speakers, headphones, and accessories. While both companies have seen success in the market, their stock performances have varied over time. Edifier Technology, a Chinese company, has shown consistent growth and profitability, while Logitech International, a Swiss company, has experienced fluctuations in stock price. Investors should consider the financial health and growth potential of each company before making investment decisions in these stocks.

Edifier Technology or Logitech International?

When comparing Edifier Technology and Logitech International, 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 Edifier Technology and Logitech International.

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. Edifier Technology has a dividend yield of 1.0%, while Logitech International has a dividend yield of 1.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Edifier Technology reports a 5-year dividend growth of 14.87% year and a payout ratio of 73.97%. On the other hand, Logitech International reports a 5-year dividend growth of 13.97% year and a payout ratio of 0.30%.

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 Edifier Technology P/E ratio at 36.88 and Logitech International's P/E ratio at 18.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Edifier Technology P/B ratio is 6.72 while Logitech International's P/B ratio is 6.09.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Edifier Technology has seen a 5-year revenue growth of 2.02%, while Logitech International's is 0.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Edifier Technology's ROE at 18.51% and Logitech International's ROE at 31.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥16.05 for Edifier Technology and $84.29 for Logitech International. Over the past year, Edifier Technology's prices ranged from ¥9.07 to ¥20.41, with a yearly change of 125.03%. Logitech International's prices fluctuated between $74.72 and $102.59, with a yearly change of 37.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.