Garmin vs TomTom

Garmin and TomTom are two major players in the global navigation technology industry, both offering a range of GPS devices for various applications. Investors are often drawn to these companies due to their innovative products and strong market presence. Over the years, Garmin has been known for its focus on fitness and outdoor activities, while TomTom has specialized more in automotive navigation solutions. The stocks of both companies have experienced fluctuations in recent years, making them a popular choice for traders looking to capitalize on the growth potential of the navigation technology market.

Garmin or TomTom?

When comparing Garmin and TomTom, 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 TomTom.

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 1.77%, while TomTom 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 40.96%. On the other hand, TomTom 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 23.29 and TomTom's P/E ratio at -11.45. 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 4.57 while TomTom's P/B ratio is 2.14.

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 TomTom's is 0.72%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 19.93% and TomTom's ROE at -15.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.36 for Garmin and $2.71 for TomTom. Over the past year, Garmin's prices ranged from $99.61 to $184.42, with a yearly change of 85.14%. TomTom's prices fluctuated between $2.50 and $4.12, with a yearly change of 64.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.