Garmin vs Waste Management

Garmin Ltd. and Waste Management, Inc. are two well-known companies in vastly different industries. Garmin is a leading producer of GPS technology and wearable devices, while Waste Management specializes in waste management and environmental services. Both stocks have shown strong performance in recent years, with Garmin benefiting from the growing demand for navigation and fitness products, and Waste Management capitalizing on the increasing focus on sustainable waste disposal. Investors looking for growth potential and stability in diverse markets may find value in these two stocks.

Garmin or Waste Management?

When comparing Garmin and Waste Management, 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 Waste Management.

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 Waste Management has a dividend yield of 1.73%. 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, Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 46.07%.

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 Waste Management's P/E ratio at 33.72. 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 Waste Management's P/B ratio is 11.51.

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 Waste Management's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 19.93% and Waste Management's ROE at 35.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.36 for Garmin and $213.43 for Waste Management. Over the past year, Garmin's prices ranged from $99.61 to $184.42, with a yearly change of 85.14%. Waste Management's prices fluctuated between $153.95 and $225.00, with a yearly change of 46.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.