IGO vs Garmin Which Is a Smarter Choice?

In the competitive world of GPS technology, two major players stand out - IGO and Garmin. Both companies have established themselves as leaders in the industry, offering a wide range of navigation products and services. Investors looking to capitalize on this growing market may consider investing in either IGO or Garmin stocks. By comparing the financial performance, market trends, and future growth potential of these two companies, investors can make informed decisions about which stock may offer the best return on investment.

IGO or Garmin?

When comparing IGO and Garmin, 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 IGO and Garmin.

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. IGO has a dividend yield of 7.35%, while Garmin has a dividend yield of 1.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IGO reports a 5-year dividend growth of 81.20% year and a payout ratio of 19203.57%. On the other hand, Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 37.42%.

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 IGO P/E ratio at 1357.12 and Garmin's P/E ratio at 27.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IGO P/B ratio is 1.19 while Garmin's P/B ratio is 5.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IGO has seen a 5-year revenue growth of 0.05%, while Garmin's is 0.54%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IGO's ROE at 0.08% and Garmin's ROE at 21.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are A$4.97 for IGO and $214.46 for Garmin. Over the past year, IGO's prices ranged from A$4.71 to A$9.25, with a yearly change of 96.39%. Garmin's prices fluctuated between $119.15 and $222.97, with a yearly change of 87.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.