NVIDIA vs STMicroelectronics Which Is Stronger?

NVIDIA and STMicroelectronics are two leading semiconductor companies, each with a unique presence in the technology industry. NVIDIA is known for its cutting-edge graphics processing units (GPUs) used in gaming, artificial intelligence, and data centers. On the other hand, STMicroelectronics specializes in a wide range of semiconductor solutions for various industries, including automotive, industrial, and IoT. Both companies have seen significant growth in recent years, but their stocks may appeal to different types of investors based on their individual goals and risk tolerance.

NVIDIA or STMicroelectronics?

When comparing NVIDIA and STMicroelectronics, 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 STMicroelectronics.

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 STMicroelectronics has a dividend yield of 0.91%. 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 1.09%. On the other hand, STMicroelectronics reports a 5-year dividend growth of 0.00% year and a payout ratio of 11.38%.

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 52.22 and STMicroelectronics's P/E ratio at 10.32. 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 49.98 while STMicroelectronics's P/B ratio is 1.35.

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 STMicroelectronics's is 0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and STMicroelectronics's ROE at 13.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $132.54 for NVIDIA and $25.95 for STMicroelectronics. Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. STMicroelectronics's prices fluctuated between $23.96 and $51.27, with a yearly change of 113.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.