NVIDIA vs WPP Which Is More Lucrative?

NVIDIA and WPP are two leading companies in the technology and advertising industries, respectively. NVIDIA is known for its cutting-edge graphics processing units and artificial intelligence capabilities, while WPP is a global advertising and marketing services company. Both companies have experienced significant growth and success in their respective fields, but their stocks have shown different performance trajectories. Investors may find themselves debating which stock to invest in based on their growth potential, financial health, and market dynamics.

NVIDIA or WPP?

When comparing NVIDIA and WPP, 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 WPP.

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 WPP has a dividend yield of 3.53%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 207.87%.

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 WPP's P/E ratio at 234.41. 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 WPP's P/B ratio is 13.63.

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 WPP's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and WPP's ROE at 5.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $132.54 for NVIDIA and $55.75 for WPP. Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. WPP's prices fluctuated between $43.02 and $57.37, with a yearly change of 33.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.