Garmin vs Trimble Which Performs Better?

Garmin and Trimble are two leading companies in the technology and navigation industry, both specializing in GPS technologies. Investors looking to capitalize on the growth potential of this sector often compare Garmin vs Trimble stocks. While Garmin is known for its consumer-oriented GPS devices and wearables, Trimble focuses more on GPS technology for industries like construction and agriculture. Understanding the financial performance and market trends of these companies is essential for investors looking to make informed decisions in this competitive market.

Garmin or Trimble?

When comparing Garmin and Trimble, 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 Trimble.

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 Trimble 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, Trimble 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 26.39 and Trimble's P/E ratio at 11.74. 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 Trimble's P/B ratio is 2.95.

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 Trimble's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 21.10% and Trimble's ROE at 29.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $208.18 for Garmin and $69.57 for Trimble. Over the past year, Garmin's prices ranged from $118.79 to $215.55, with a yearly change of 81.45%. Trimble's prices fluctuated between $42.83 and $74.22, with a yearly change of 73.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.