LVMH vs Xerox Which Offers More Value?

LVMH and Xerox are two companies that operate in entirely different industries. LVMH is a luxury goods conglomerate that owns prestigious brands such as Louis Vuitton and Christian Dior, while Xerox is a technology and document management company. In recent years, LVMH's stock price has experienced steady growth due to its strong brand presence and global appeal, while Xerox has faced challenges in the increasingly competitive tech market. Investors looking for stability and long-term growth may lean towards LVMH, while those seeking turnaround potential may find Xerox more appealing.

LVMH or Xerox?

When comparing LVMH and Xerox, 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 Xerox.

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 Xerox has a dividend yield of 11.39%. 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, Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.38%.

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 22.92 and Xerox's P/E ratio at -0.80. 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 4.94 while Xerox's P/B ratio is 0.72.

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 Xerox's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LVMH's ROE at 22.19% and Xerox's ROE at -57.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $668.40 for LVMH and $8.54 for Xerox. Over the past year, LVMH's prices ranged from $598.42 to $958.69, with a yearly change of 60.20%. Xerox's prices fluctuated between $8.02 and $19.78, with a yearly change of 146.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.