Okuma vs DMG MORI Which Is a Smarter Choice?

Okuma Corporation and DMG MORI are two leading manufacturers of machine tools for the metalworking industry. Both companies are known for their high-quality products and innovative technologies. Investors looking to capitalize on the growing demand for machine tools may consider investing in Okuma or DMG MORI stocks. However, it is important to carefully evaluate the financial performance, market positioning, and future growth prospects of each company before making an investment decision. Let's delve deeper into the comparison of Okuma vs DMG MORI stocks.

Okuma or DMG MORI?

When comparing Okuma and DMG MORI, 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 Okuma and DMG MORI.

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. Okuma has a dividend yield of 4.94%, while DMG MORI has a dividend yield of 2.29%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Okuma reports a 5-year dividend growth of 9.63% year and a payout ratio of 0.00%. On the other hand, DMG MORI reports a 5-year dividend growth of 0.00% year and a payout ratio of 84.63%.

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 Okuma P/E ratio at 12.94 and DMG MORI's P/E ratio at 20.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Okuma P/B ratio is 0.82 while DMG MORI's P/B ratio is 2.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Okuma has seen a 5-year revenue growth of 0.12%, while DMG MORI's is -0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Okuma's ROE at 6.32% and DMG MORI's ROE at 12.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3025.00 for Okuma and €44.80 for DMG MORI. Over the past year, Okuma's prices ranged from ¥2611.50 to ¥4100.00, with a yearly change of 57.00%. DMG MORI's prices fluctuated between €42.70 and €45.30, with a yearly change of 6.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.