Midea vs GREE

Midea Group and GREE Electric Appliances are two of the leading companies in the home appliance industry in China. Both companies have a strong presence in the global market and have been competing fiercely for market share. Investors often compare Midea and GREE stocks to determine which company is a better investment option. While Midea has a larger market cap and a more diversified product portfolio, GREE has been known for its innovation and technological advancements. Understanding the strengths and weaknesses of each company can help investors make informed decisions about their investments in the home appliance sector.

Midea or GREE?

When comparing Midea and GREE, 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 Midea and GREE.

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. Midea has a dividend yield of 3.95%, while GREE has a dividend yield of 3.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Midea reports a 5-year dividend growth of 15.81% year and a payout ratio of 108.74%. On the other hand, GREE reports a 5-year dividend growth of 1.92% 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 Midea P/E ratio at 14.62 and GREE's P/E ratio at 17.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Midea P/B ratio is 3.22 while GREE's P/B ratio is 0.87.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Midea has seen a 5-year revenue growth of 0.37%, while GREE's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Midea's ROE at 22.12% and GREE's ROE at 4.96%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥74.48 for Midea and ¥474.00 for GREE. Over the past year, Midea's prices ranged from ¥48.75 to ¥83.67, with a yearly change of 71.63%. GREE's prices fluctuated between ¥414.00 and ¥612.00, with a yearly change of 47.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.