GEM vs Capcom Which Is a Smarter Choice?

GEM and Capcom are two leading companies in the gaming industry, each with its own unique strengths and offerings. GEM, also known as Global Entertainment Media, specializes in mobile and online gaming, while Capcom is renowned for its hit franchises such as Resident Evil and Street Fighter. Both companies have seen fluctuations in their stock prices over the years, influenced by factors such as game releases, market trends, and consumer demand. Investors closely monitor the performance of GEM and Capcom stocks to make informed decisions in the ever-evolving gaming market.

GEM or Capcom?

When comparing GEM and Capcom, 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 GEM and Capcom.

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. GEM has a dividend yield of 1.16%, while Capcom has a dividend yield of 1.27%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GEM reports a 5-year dividend growth of 13.97% year and a payout ratio of 119.03%. On the other hand, Capcom reports a 5-year dividend growth of 0.47% year and a payout ratio of 42.44%.

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 GEM P/E ratio at 27.31 and Capcom's P/E ratio at 20.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GEM P/B ratio is 1.83 while Capcom's P/B ratio is 3.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GEM has seen a 5-year revenue growth of 0.63%, while Capcom's is -0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GEM's ROE at 6.73% and Capcom's ROE at 18.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥6.86 for GEM and $11.62 for Capcom. Over the past year, GEM's prices ranged from ¥3.95 to ¥7.84, with a yearly change of 98.48%. Capcom's prices fluctuated between $7.73 and $12.20, with a yearly change of 57.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.