Garmin vs IGO Which Is a Better Investment?

Garmin and IGO are two popular stocks in the technology industry, with both companies specializing in GPS navigation systems. Garmin is a well-established player in the market, known for its high-quality products and strong brand recognition. On the other hand, IGO is a newer entrant, but with innovative technology and growth potential. Investors may be drawn to Garmin for its stability and reputation, while IGO may offer higher returns for those willing to take on more risk. Either way, both stocks present opportunities for growth in the competitive GPS market.

Garmin or IGO?

When comparing Garmin and IGO, 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 IGO.

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 1.78%, while IGO has a dividend yield of 7.27%. 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, IGO reports a 5-year dividend growth of 58.82% year and a payout ratio of 19203.57%.

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 26.39 and IGO's P/E ratio at 1374.68. 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 5.34 while IGO's P/B ratio is 1.20.

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 IGO's is 0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 21.10% and IGO's ROE at 0.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $208.18 for Garmin and A$5.08 for IGO. Over the past year, Garmin's prices ranged from $118.79 to $215.55, with a yearly change of 81.45%. IGO's prices fluctuated between A$4.71 and A$9.26, with a yearly change of 96.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.