HTC vs ZTE Which Is More Favorable?

HTC and ZTE are two prominent technology companies in the mobile phone industry. Both companies have experienced fluctuations in their stock prices over the years due to various factors such as market competition, product launches, and overall industry performance. Investors often compare HTC and ZTE stocks to determine which company offers a better investment opportunity. Understanding the strengths and weaknesses of each company can help investors make informed decisions and capitalize on potential opportunities in the stock market.

HTC or ZTE?

When comparing HTC and ZTE, 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 HTC and ZTE.

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. HTC has a dividend yield of -%, while ZTE has a dividend yield of 4.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HTC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ZTE reports a 5-year dividend growth of 0.00% year and a payout ratio of 72.49%.

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 HTC P/E ratio at -9.93 and ZTE's P/E ratio at 7.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. HTC P/B ratio is 1.58 while ZTE's P/B ratio is 0.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, HTC has seen a 5-year revenue growth of -0.82%, while ZTE's is 0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HTC's ROE at -15.45% and ZTE's ROE at 13.34%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €4.88 for HTC and $1.98 for ZTE. Over the past year, HTC's prices ranged from €3.98 to €6.05, with a yearly change of 52.01%. ZTE's prices fluctuated between $1.74 and $3.50, with a yearly change of 101.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.