LVMH vs Quarterhill Which Is More Reliable?

LVMH Moët Hennessy Louis Vuitton SE, the world's largest luxury goods company, and Quarterhill Inc., a diversified holding company focusing on intellectual property licensing and innovative technology solutions, are two key players in the stock market. LVMH's stock has shown consistent growth and impressive profitability due to its strong portfolio of luxury brands, while Quarterhill's stock performance has been more volatile but offers potential for high returns. Investors must carefully analyze the market trends and company fundamentals before making an investment decision in either of these stocks.

LVMH or Quarterhill?

When comparing LVMH and Quarterhill, 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 LVMH and Quarterhill.

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. LVMH has a dividend yield of 2.15%, while Quarterhill has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LVMH reports a 5-year dividend growth of 16.19% year and a payout ratio of 48.75%. On the other hand, Quarterhill reports a 5-year dividend growth of -24.76% year and a payout ratio of -0.19%.

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 LVMH P/E ratio at 22.89 and Quarterhill's P/E ratio at -4.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LVMH P/B ratio is 4.93 while Quarterhill's P/B ratio is 0.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LVMH has seen a 5-year revenue growth of 0.85%, while Quarterhill's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LVMH's ROE at 22.19% and Quarterhill's ROE at -17.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $668.40 for LVMH and $1.18 for Quarterhill. Over the past year, LVMH's prices ranged from $598.42 to $958.69, with a yearly change of 60.20%. Quarterhill's prices fluctuated between $1.05 and $1.61, with a yearly change of 53.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.