Nikon vs Olympus Which Is a Better Investment?

Nikon and Olympus are two well-known brands in the camera industry, each with a loyal customer base and a long history of producing high-quality products. The stocks of both companies have been subject to fluctuations over the years, influenced by factors such as technological advancements, market trends, and competition from other brands. Investors and analysts closely monitor the performance of Nikon and Olympus stocks to make informed decisions about buying, selling, or holding onto their investments in these companies.

Nikon or Olympus?

When comparing Nikon and Olympus, 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 Nikon and Olympus.

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. Nikon has a dividend yield of -%, while Olympus has a dividend yield of 0.75%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nikon reports a 5-year dividend growth of 0.00% year and a payout ratio of 52.74%. On the other hand, Olympus reports a 5-year dividend growth of 0.00% year and a payout ratio of 27.88%.

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 Nikon P/E ratio at 17.83 and Olympus's P/E ratio at 36.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nikon P/B ratio is 0.83 while Olympus's P/B ratio is 3.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nikon has seen a 5-year revenue growth of -0.03%, while Olympus's is 0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nikon's ROE at 4.87% and Olympus's ROE at 10.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.17 for Nikon and $15.75 for Olympus. Over the past year, Nikon's prices ranged from $9.16 to $13.07, with a yearly change of 42.69%. Olympus's prices fluctuated between $12.94 and $18.50, with a yearly change of 42.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.