NEXON vs Celsius Which Should You Buy?

NEXON Co., Ltd. is a global video game company based in Japan, known for its popular online games such as MapleStory and Dungeon Fighter Online. Celsius Holdings, Inc. is a health and wellness company that produces functional beverages, including the popular Celsius energy drinks. Both companies operate in different industries, but their stocks have been compared in terms of performance and potential for growth. This analysis will provide insight into the financial outlook and market dynamics of NEXON versus Celsius stocks.

NEXON or Celsius?

When comparing NEXON and Celsius, 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 NEXON and Celsius.

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. NEXON has a dividend yield of 0.6%, while Celsius has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NEXON reports a 5-year dividend growth of 0.00% year and a payout ratio of 12.28%. On the other hand, Celsius reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.56%.

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 NEXON P/E ratio at 26.54 and Celsius's P/E ratio at 36.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NEXON P/B ratio is 1.80 while Celsius's P/B ratio is 17.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NEXON has seen a 5-year revenue growth of 0.73%, while Celsius's is 15.30%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NEXON's ROE at 7.17% and Celsius's ROE at 20.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.17 for NEXON and $30.63 for Celsius. Over the past year, NEXON's prices ranged from $12.61 to $21.74, with a yearly change of 72.40%. Celsius's prices fluctuated between $25.23 and $99.62, with a yearly change of 294.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.