General Electric vs Siemens Which Is More Profitable?

General Electric and Siemens are two of the largest conglomerates in the industrial sector, with a history of fierce competition in various markets. The stocks of both companies have been closely followed by investors due to their significant impact on the global economy. While General Electric has faced challenges in recent years, Siemens has been able to maintain a strong position in the market. Both stocks offer potential for growth and are subject to various factors that can impact their performance.

General Electric or Siemens?

When comparing General Electric and Siemens, 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 Siemens.

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 0.55%, while Siemens has a dividend yield of 0.13%. 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, Siemens reports a 5-year dividend growth of 7.39% 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 General Electric P/E ratio at 29.05 and Siemens's P/E ratio at 103.37. 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 9.61 while Siemens's P/B ratio is 18.28.

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 Siemens's is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Electric's ROE at 26.39% and Siemens's ROE at 19.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $165.54 for General Electric and ₹7791.95 for Siemens. Over the past year, General Electric's prices ranged from $97.23 to $194.80, with a yearly change of 100.35%. Siemens's prices fluctuated between ₹3809.15 and ₹8129.90, with a yearly change of 113.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.