Leo vs NEC Which Performs Better?

Leo Corporation and NEC Corporation are two well-known companies in the technology sector, each with their own strengths and weaknesses. Leo Corporation is known for its innovation in software development and cutting-edge technologies, while NEC Corporation has a long-standing reputation for its hardware products and solutions. Investors looking to compare the two stocks may consider factors such as financial performance, market share, and growth prospects. This analysis can help investors make informed decisions on which company's stock is the better investment option.

Leo or NEC?

When comparing Leo and NEC, 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 Leo and NEC.

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. Leo has a dividend yield of 1.36%, while NEC has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Leo reports a 5-year dividend growth of 0.00% year and a payout ratio of -91.08%. On the other hand, NEC reports a 5-year dividend growth of 0.00% year and a payout ratio of 21.20%.

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 Leo P/E ratio at -49.75 and NEC's P/E ratio at 22.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Leo P/B ratio is 1.16 while NEC's P/B ratio is 1.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Leo has seen a 5-year revenue growth of 0.39%, while NEC's is 0.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Leo's ROE at -2.27% and NEC's ROE at 8.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥2.13 for Leo and $83.00 for NEC. Over the past year, Leo's prices ranged from ¥1.31 to ¥2.50, with a yearly change of 90.84%. NEC's prices fluctuated between $49.75 and $97.75, with a yearly change of 96.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.