Midea vs Whirlpool Which Is More Reliable?

Midea Group and Whirlpool Corporation are two globally renowned companies in the home appliance industry. Midea, a Chinese multinational corporation, is known for its innovative technology and wide range of products, while Whirlpool, an American-based company, has a long history of producing high-quality appliances. Both companies have a strong presence in the market and a loyal customer base. Investors may consider factors such as financial performance, market share, and growth potential when comparing the stocks of Midea and Whirlpool.

Midea or Whirlpool?

When comparing Midea and Whirlpool, 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 Whirlpool.

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 4.15%, while Whirlpool has a dividend yield of 6.23%. 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, Whirlpool reports a 5-year dividend growth of 9.00% year and a payout ratio of 68.04%.

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 14.66 and Whirlpool's P/E ratio at 11.07. 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 2.65 while Whirlpool's P/B ratio is 2.04.

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 Whirlpool's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Midea's ROE at 21.27% and Whirlpool's ROE at 20.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥71.85 for Midea and $111.11 for Whirlpool. Over the past year, Midea's prices ranged from ¥48.75 to ¥83.67, with a yearly change of 71.63%. Whirlpool's prices fluctuated between $84.18 and $125.68, with a yearly change of 49.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.