GREE vs Orange Which Should You Buy?

GREE, a Japanese mobile gaming company, and Orange, a multinational telecommunications corporation, are two prominent players in their respective industries. While GREE has a strong presence in the gaming market, Orange is known for its robust telecommunications infrastructure and services. Both companies have experienced fluctuations in their stock values in recent years, with GREE facing challenges in the competitive gaming market and Orange dealing with increasing regulatory pressures. Investors are closely watching how these companies will navigate these challenges and grow their respective businesses.

GREE or Orange?

When comparing GREE and Orange, 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 Orange.

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 3.66%, while Orange has a dividend yield of 4.3%. 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, Orange reports a 5-year dividend growth of -1.65% year and a payout ratio of 76.46%.

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 42.79 and Orange's P/E ratio at 8.77. 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 0.85 while Orange's P/B ratio is 1.07.

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 Orange's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GREE's ROE at 1.94% and Orange's ROE at 11.04%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥442.00 for GREE and $11.07 for Orange. Over the past year, GREE's prices ranged from ¥401.00 to ¥612.00, with a yearly change of 52.62%. Orange's prices fluctuated between $9.82 and $12.41, with a yearly change of 26.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.