Ricoh vs Xerox Which Is a Smarter Choice?

Ricoh and Xerox are two prominent companies in the imaging and document management industry, known for their innovative technologies and solutions. Both companies have a strong presence in the market, with a global reach and diverse product offerings. Investors often compare Ricoh and Xerox stocks to analyze their financial performance, market position, and potential for growth. Understanding the key differences and similarities between these two companies can help investors make informed decisions about their investment portfolios.

Ricoh or Xerox?

When comparing Ricoh and Xerox, 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 Ricoh and Xerox.

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. Ricoh has a dividend yield of 0.95%, while Xerox has a dividend yield of 11.29%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ricoh reports a 5-year dividend growth of 3.83% year and a payout ratio of 50.54%. On the other hand, Xerox reports a 5-year dividend growth of 0.00% year and a payout ratio of -10.38%.

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 Ricoh P/E ratio at 25.18 and Xerox's P/E ratio at -0.81. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ricoh P/B ratio is 1.02 while Xerox's P/B ratio is 0.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ricoh has seen a 5-year revenue growth of 0.22%, while Xerox's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ricoh's ROE at 4.21% and Xerox's ROE at -57.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.68 for Ricoh and $8.81 for Xerox. Over the past year, Ricoh's prices ranged from $6.96 to $12.00, with a yearly change of 72.41%. Xerox's prices fluctuated between $8.02 and $19.78, with a yearly change of 146.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.