Microsoft vs Toto Which Performs Better?

Microsoft and Toto are two major players in the technology industry, each with their own unique strengths and weaknesses. Microsoft, known for its software products and cloud services, has a long history of success in the market. On the other hand, Toto, a Japanese company specializing in bathroom fixtures and plumbing products, may not have the same global recognition but has a strong presence in its niche market. Investors may be torn between the stability of Microsoft and the potential growth of Toto stocks.

Microsoft or Toto?

When comparing Microsoft and Toto, 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 Toto.

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 Toto has a dividend yield of 0.02%. 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, Toto reports a 5-year dividend growth of 132.90% year and a payout ratio of 0.00%.

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 Toto's P/E ratio at 16.90. 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 Toto's P/B ratio is 1.33.

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 Toto's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Microsoft's ROE at 34.56% and Toto's ROE at 8.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $445.58 for Microsoft and $26.04 for Toto. Over the past year, Microsoft's prices ranged from $366.28 to $468.35, with a yearly change of 27.87%. Toto's prices fluctuated between $22.57 and $37.75, with a yearly change of 67.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.