Garmin vs ICON Which Is Superior?

Garmin and ICON stocks are two popular choices for investors looking to capitalize on the growth of the technology industry. Garmin, known for its innovative GPS navigation devices and wearable technology, has been a market leader for years. On the other hand, ICON, a newer player in the industry, focuses on aviation and simulation technology. Both companies offer potential for growth and profitability, but investors should consider factors such as market trends, financial performance, and industry competition before making a decision.

Garmin or ICON?

When comparing Garmin and ICON, 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 Garmin and ICON.

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. Garmin has a dividend yield of 1.38%, while ICON has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 37.42%. On the other hand, ICON 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 Garmin P/E ratio at 27.28 and ICON's P/E ratio at 23.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Garmin P/B ratio is 5.52 while ICON's P/B ratio is 1.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Garmin has seen a 5-year revenue growth of 0.54%, while ICON's is 1.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 21.10% and ICON's ROE at 7.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $214.46 for Garmin and $206.19 for ICON. Over the past year, Garmin's prices ranged from $119.15 to $222.97, with a yearly change of 87.13%. ICON's prices fluctuated between $183.38 and $347.72, with a yearly change of 89.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.