LVMH vs Toshiba Which Is a Better Investment?

LVMH, the French luxury goods conglomerate, and Toshiba, the Japanese multinational conglomerate, are both prominent companies in their respective industries. LVMH is known for its high-end fashion, perfume, and cosmetics brands, while Toshiba is a leader in electronics, and technology solutions. Investors often compare and contrast the performance of these two stocks to make informed investment decisions. Their market dynamics, financial stability, and growth prospects all play a crucial role in determining their stock values.

LVMH or Toshiba?

When comparing LVMH and Toshiba, 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 Toshiba.

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 2.14%, while Toshiba 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, Toshiba reports a 5-year dividend growth of 0.00% year and a payout ratio of -8.20%.

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 LVMH P/E ratio at 23.03 and Toshiba's P/E ratio at -17.78. 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 4.96 while Toshiba's P/B ratio is 0.74.

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 Toshiba's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LVMH's ROE at 22.19% and Toshiba's ROE at -12.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $675.00 for LVMH and $14.81 for Toshiba. Over the past year, LVMH's prices ranged from $598.42 to $958.69, with a yearly change of 60.20%. Toshiba's prices fluctuated between $14.25 and $16.75, with a yearly change of 17.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.