General Electric vs Howden Joinery Which Is Stronger?

General Electric Company (GE) and Howden Joinery Group PLC (Howden) are two well-known companies in the stock market with distinct business models and market positions. GE is a multinational conglomerate operating in various sectors such as aviation, healthcare, and renewable energy, while Howden is a UK-based kitchen supplier. Despite their differences, both companies have faced challenges in recent years, with GE struggling to recover from financial setbacks and Howden navigating the impacts of the Brexit uncertainty on the UK housing market. Investors are closely monitoring the performance of these stocks to make informed decisions about their portfolios.

General Electric or Howden Joinery?

When comparing General Electric and Howden Joinery, 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 General Electric and Howden Joinery.

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. General Electric has a dividend yield of 0.54%, while Howden Joinery has a dividend yield of 2.49%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Electric reports a 5-year dividend growth of -2.87% year and a payout ratio of 12.65%. On the other hand, Howden Joinery reports a 5-year dividend growth of 11.65% year and a payout ratio of 45.32%.

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 General Electric P/E ratio at 29.97 and Howden Joinery's P/E ratio at 17.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Electric P/B ratio is 9.92 while Howden Joinery's P/B ratio is 4.57.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Electric has seen a 5-year revenue growth of -0.44%, while Howden Joinery's is 0.70%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Electric's ROE at 26.39% and Howden Joinery's ROE at 25.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $170.65 for General Electric and $10.66 for Howden Joinery. Over the past year, General Electric's prices ranged from $95.69 to $194.80, with a yearly change of 103.57%. Howden Joinery's prices fluctuated between $9.52 and $13.00, with a yearly change of 36.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.