GREE vs Midea Which Is More Favorable?

GREE Electric Appliances Inc. and Midea Group Co. are two competing companies in the home appliance industry. Both are Chinese companies that are publicly traded on the stock market. GREE specializes in air conditioning and heating products, while Midea offers a wide range of household appliances. Investors often compare the performance of the two stocks as they both compete for market share in China and globally. Understanding the financial health and growth prospects of both companies is crucial for investors looking to make informed decisions on their stock investments.

GREE or Midea?

When comparing GREE and Midea, 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 GREE and Midea.

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. GREE has a dividend yield of 3.63%, while Midea has a dividend yield of 3.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GREE reports a 5-year dividend growth of 1.92% year and a payout ratio of 0.00%. On the other hand, Midea reports a 5-year dividend growth of 15.81% year and a payout ratio of 103.85%.

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 GREE P/E ratio at 42.88 and Midea's P/E ratio at 15.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GREE P/B ratio is 0.86 while Midea's P/B ratio is 2.76.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GREE has seen a 5-year revenue growth of 0.19%, while Midea's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GREE's ROE at 1.94% and Midea's ROE at 21.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥451.00 for GREE and ¥71.78 for Midea. Over the past year, GREE's prices ranged from ¥401.00 to ¥612.00, with a yearly change of 52.62%. Midea's prices fluctuated between ¥49.75 and ¥83.67, with a yearly change of 68.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.