HP vs Logitech International

HP Inc. and Logitech International are two prominent companies in the tech industry with a focus on hardware products. HP Inc. is known for its wide range of laptops, desktops, printers, and other computer accessories, while Logitech International specializes in computer peripherals such as keyboards, mice, and webcams. Both companies have experienced growth and success in the market, but there are key differences in their business models and product offerings that may impact their stock performance. In this analysis, we will compare the stocks of HP Inc. and Logitech International to determine which may be the better investment option.

HP or Logitech International?

When comparing HP and Logitech International, 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 HP and Logitech International.

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. HP has a dividend yield of 3.73%, while Logitech International has a dividend yield of 1.56%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 37.71%. On the other hand, Logitech International reports a 5-year dividend growth of 13.97% year and a payout ratio of 25.97%.

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 HP P/E ratio at 12.73 and Logitech International's P/E ratio at 19.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HP P/B ratio is -26.00 while Logitech International's P/B ratio is 5.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HP has seen a 5-year revenue growth of 0.50%, while Logitech International's is 0.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -226.67% and Logitech International's ROE at 31.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.84 for HP and $86.88 for Logitech International. Over the past year, HP's prices ranged from $25.67 to $39.52, with a yearly change of 53.95%. Logitech International's prices fluctuated between $67.82 and $102.59, with a yearly change of 51.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.