Microsoft vs Sony Which Is Superior?

Microsoft Corp and Sony Corp are two of the leading tech companies in the world, with a strong presence in the gaming industry. Both companies have seen their stocks perform well in recent years, as they continue to innovate and improve their products and services. Microsoft's stock is known for its stability and consistent growth, while Sony's stock has seen fluctuations due to their diverse portfolio of products. Investors often compare and analyze the performance of these two giants in order to make informed investment decisions.

Microsoft or Sony?

When comparing Microsoft and Sony, 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 Microsoft and Sony.

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. Microsoft has a dividend yield of 0.69%, while Sony has a dividend yield of 0.56%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%. On the other hand, Sony reports a 5-year dividend growth of 43.63% year and a payout ratio of 9.28%.

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 Microsoft P/E ratio at 36.73 and Sony's P/E ratio at 18.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Microsoft P/B ratio is 11.55 while Sony's P/B ratio is 2.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Microsoft has seen a 5-year revenue growth of 0.99%, while Sony's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Microsoft's ROE at 34.56% and Sony's ROE at 14.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $445.58 for Microsoft and $21.62 for Sony. Over the past year, Microsoft's prices ranged from $366.28 to $468.35, with a yearly change of 27.87%. Sony's prices fluctuated between $15.02 and $22.71, with a yearly change of 51.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.