Nongshim vs Nissin Which Is More Promising?

Nongshim and Nissin are two prominent players in the global instant noodle industry, both known for their popular brands such as Shin Ramyun and Cup Noodles, respectively. Investors interested in this sector may want to compare and contrast the performance of Nongshim vs Nissin stocks. Nongshim, a South Korean company, has seen steady growth in recent years, while Nissin, a Japanese company, has faced challenges in the competitive market. This analysis can provide valuable insight for investors looking to make informed decisions in the fast-paced world of food industry investing.

Nongshim or Nissin?

When comparing Nongshim and Nissin, 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 Nongshim and Nissin.

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. Nongshim has a dividend yield of 1.43%, while Nissin has a dividend yield of 3.64%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Nongshim reports a 5-year dividend growth of 4.56% year and a payout ratio of 17.14%. On the other hand, Nissin reports a 5-year dividend growth of 29.94% year and a payout ratio of 0.00%.

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 Nongshim P/E ratio at 11.93 and Nissin's P/E ratio at 5.38. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Nongshim P/B ratio is 0.79 while Nissin's P/B ratio is 0.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Nongshim has seen a 5-year revenue growth of 0.52%, while Nissin's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Nongshim's ROE at 6.80% and Nissin's ROE at 14.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩347000.00 for Nongshim and ¥4285.00 for Nissin. Over the past year, Nongshim's prices ranged from ₩347000.00 to ₩599000.00, with a yearly change of 72.62%. Nissin's prices fluctuated between ¥2379.00 and ¥4925.00, with a yearly change of 107.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.