Midea vs Toshiba Which Should You Buy?

Midea Group and Toshiba Corporation are two prominent players in the global electronics and appliances industry. Both companies have a strong presence in the market and have been competing against each other for market share. Investors looking to invest in these two companies may find it challenging to decide which stock to choose. In this comparison, we will analyze the financial performance, market positioning, and growth prospects of Midea and Toshiba stocks to help investors make an informed decision.

Midea or Toshiba?

When comparing Midea 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 Midea 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. Midea has a dividend yield of 4.03%, while Toshiba has a dividend yield of -%. 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 103.85%. 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 Midea P/E ratio at 14.98 and Toshiba's P/E ratio at -17.75. 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 2.73 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, Midea has seen a 5-year revenue growth of 0.36%, while Toshiba's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Midea's ROE at 21.27% and Toshiba's ROE at -12.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥71.78 for Midea and $14.81 for Toshiba. Over the past year, Midea's prices ranged from ¥49.75 to ¥83.67, with a yearly change of 68.18%. 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.