Guild vs Yamaha Which Outperforms?

Guild and Yamaha are both well-known brands in the musical instrument industry. Guild, founded in 1952, has a long history of producing high-quality guitars and other instruments. On the other hand, Yamaha, established in 1887, offers a wide range of musical instruments and equipment. Both companies have a strong reputation for craftsmanship and innovation, making their stocks attractive to investors looking to capitalize on the growing popularity of music worldwide. In this comparison, we will analyze the performance of Guild and Yamaha stocks to determine which one may be a better investment opportunity.

Guild or Yamaha?

When comparing Guild and Yamaha, 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 Guild and Yamaha.

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. Guild has a dividend yield of 3.76%, while Yamaha has a dividend yield of 3.21%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Guild reports a 5-year dividend growth of 0.00% year and a payout ratio of -65.21%. On the other hand, Yamaha reports a 5-year dividend growth of -1.36% year and a payout ratio of 38.03%.

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 Guild P/E ratio at -8.71 and Yamaha's P/E ratio at 16.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Guild P/B ratio is 0.71 while Yamaha's P/B ratio is 1.03.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Guild has seen a 5-year revenue growth of 0.29%, while Yamaha's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Guild's ROE at -7.86% and Yamaha's ROE at 6.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $13.25 for Guild and $7.20 for Yamaha. Over the past year, Guild's prices ranged from $12.78 to $18.25, with a yearly change of 42.89%. Yamaha's prices fluctuated between $6.02 and $9.03, with a yearly change of 50.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.