HP vs LVMH Which Performs Better?

HP Inc. and LVMH Moët Hennessy Louis Vuitton SE are two powerhouse companies in the global market, each with a strong presence in their respective industries. HP Inc. is a leading provider of personal computing devices and printers, while LVMH is a luxury goods conglomerate that owns renowned brands such as Louis Vuitton, Moët & Chandon, and Hennessy. Investors looking to diversify their portfolios may consider comparing the performance of HP vs. LVMH stocks to make informed investment decisions.

HP or LVMH?

When comparing HP and LVMH, 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 LVMH.

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 3.02%, while LVMH has a dividend yield of 2.11%. 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 38.74%. On the other hand, LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%.

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 12.60 and LVMH's P/E ratio at 23.41. 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 11.81 while LVMH's P/B ratio is 5.04.

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 LVMH's is 0.85%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -1122.35% and LVMH's ROE at 22.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.12 for HP and $689.00 for LVMH. Over the past year, HP's prices ranged from $27.43 to $39.80, with a yearly change of 45.10%. LVMH's prices fluctuated between $598.42 and $958.69, with a yearly change of 60.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.