Panasonic vs Sony Which Outperforms?

Panasonic and Sony are two leading companies in the electronics industry, both known for their innovative technologies and quality products. When it comes to their stocks, investors are often faced with the dilemma of choosing between the two. Panasonic's stock has shown stability and consistent growth over the years, while Sony's stock has been known to be more volatile but potentially lucrative. Understanding the strengths and weaknesses of each company can help investors make informed decisions when it comes to investing in Panasonic vs Sony stocks.

Panasonic or Sony?

When comparing Panasonic and Sony, 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 Panasonic and Sony.

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. Panasonic has a dividend yield of 2.84%, while Sony has a dividend yield of 1.43%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Panasonic reports a 5-year dividend growth of -6.44% year and a payout ratio of 26.04%. On the other hand, Sony reports a 5-year dividend growth of 0.00% year and a payout ratio of 10.57%.

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 Panasonic P/E ratio at 10.25 and Sony's P/E ratio at 3.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Panasonic P/B ratio is 0.66 while Sony's P/B ratio is 0.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Panasonic has seen a 5-year revenue growth of 0.05%, while Sony's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Panasonic's ROE at 7.01% and Sony's ROE at 13.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.95 for Panasonic and $18.89 for Sony. Over the past year, Panasonic's prices ranged from $6.85 to $10.82, with a yearly change of 57.96%. Sony's prices fluctuated between $15.02 and $20.67, with a yearly change of 37.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.