HP vs Sony Which Outperforms?

HP and Sony are two major players in the technology and entertainment industries, each with a significant presence in the stock market. HP, known for its innovative computing and printing solutions, has a long-standing history of success in the market. On the other hand, Sony, a powerhouse in the consumer electronics and entertainment sectors, has also seen strong growth and performance in the stock market. Investors are often torn between these two companies as they weigh the potential for future growth and profitability.

HP or Sony?

When comparing HP and Sony, 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 Sony.

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 3.23%, while Sony has a dividend yield of 0.56%. 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 38.74%. On the other hand, Sony reports a 5-year dividend growth of 43.63% year and a payout ratio of 9.28%.

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 11.94 and Sony's P/E ratio at 18.03. 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 11.20 while Sony's P/B ratio is 2.63.

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 Sony's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -1122.35% and Sony's ROE at 14.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $34.34 for HP and $21.62 for Sony. Over the past year, HP's prices ranged from $27.43 to $39.80, with a yearly change of 45.10%. Sony's prices fluctuated between $15.02 and $22.71, with a yearly change of 51.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.