Nintendo Co vs Universal Which Is a Better Investment?

Nintendo Co. and Universal stocks are two prominent players in the entertainment industry, each offering unique investment opportunities for stakeholders. Nintendo, known for its iconic video game franchises like Super Mario and The Legend of Zelda, represents a leader in the gaming sector. On the other hand, Universal, a subsidiary of Comcast Corporation, encompasses a diverse portfolio of theme parks, film studios, and television networks. Both companies have experienced fluctuations in their stock prices due to various factors, making them intriguing options for potential investors.

Nintendo Co or Universal?

When comparing Nintendo Co and Universal, 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 Nintendo Co and Universal.

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. Nintendo Co has a dividend yield of 2.01%, while Universal has a dividend yield of 7.52%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nintendo Co reports a 5-year dividend growth of 25.58% year and a payout ratio of 0.00%. On the other hand, Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%.

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 Nintendo Co P/E ratio at 29.29 and Universal's P/E ratio at 10.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nintendo Co P/B ratio is 3.78 while Universal's P/B ratio is 0.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nintendo Co has seen a 5-year revenue growth of 0.44%, while Universal's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nintendo Co's ROE at 12.85% and Universal's ROE at 8.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥8224.00 for Nintendo Co and $53.38 for Universal. Over the past year, Nintendo Co's prices ranged from ¥8224.00 to ¥8250.00, with a yearly change of 0.32%. Universal's prices fluctuated between $45.19 and $67.80, with a yearly change of 50.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.