NVIDIA vs ATI

NVIDIA and ATI are two prominent companies in the graphics processing unit (GPU) market, with both companies having a significant impact on the technology industry. Investors looking to capitalize on the vast potential of the GPU market often find themselves comparing the stocks of these two giants. NVIDIA is known for its innovative technology and strong market presence, while ATI, now owned by AMD, has a history of producing high-quality graphics cards. Understanding the key differences and financial performance of these companies can help investors make informed decisions when considering investing in NVIDIA or ATI stocks.

NVIDIA or ATI?

When comparing NVIDIA and ATI, 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 NVIDIA and ATI.

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. NVIDIA has a dividend yield of 0.03%, while ATI has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%. On the other hand, ATI reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.33%.

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 NVIDIA P/E ratio at 61.02 and ATI's P/E ratio at 21.06. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 55.62 while ATI's P/B ratio is 5.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while ATI's is 1.12%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 115.52% and ATI's ROE at 28.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $128.74 for NVIDIA and $61.70 for ATI. Over the past year, NVIDIA's prices ranged from $39.23 to $140.76, with a yearly change of 258.81%. ATI's prices fluctuated between $35.03 and $68.92, with a yearly change of 96.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.