HPC vs ASML Which Is More Attractive?

High-performance computing (HPC) and ASML are two lucrative investment options in the tech sector. HPC, which involves supercomputers and advanced hardware, is crucial for industries like finance, healthcare, and research. ASML, on the other hand, is a leading provider of photolithography equipment for the semiconductor industry. Both stocks have shown impressive growth potential in recent years, but investors must carefully consider the unique characteristics and market dynamics of each before making investment decisions.

HPC or ASML?

When comparing HPC and ASML, 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 HPC and ASML.

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. HPC has a dividend yield of -%, while ASML has a dividend yield of 0.9%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HPC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%.

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 HPC P/E ratio at 9.46 and ASML's P/E ratio at 38.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HPC P/B ratio is 0.21 while ASML's P/B ratio is 16.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HPC has seen a 5-year revenue growth of 0.10%, while ASML's is 1.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HPC's ROE at 2.21% and ASML's ROE at 47.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are HK$0.06 for HPC and $706.49 for ASML. Over the past year, HPC's prices ranged from HK$0.03 to HK$0.08, with a yearly change of 151.61%. ASML's prices fluctuated between $645.45 and $1110.09, with a yearly change of 71.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.