Seibu vs ORIX Which Is More Lucrative?

Seibu Holdings Inc. and ORIX Corporation are two major players in the Japanese stock market. Seibu is a diversified conglomerate with interests in transportation, real estate, and retail, while ORIX is a financial services company specializing in leasing, investment banking, and asset management. Both companies have a strong presence in the Japanese economy and are considered bellwethers for the country's financial health. Investors often compare the performance of Seibu and ORIX stocks to gauge the overall market sentiment and economic outlook.

Seibu or ORIX?

When comparing Seibu and ORIX, 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 Seibu and ORIX.

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. Seibu has a dividend yield of 0.9%, while ORIX has a dividend yield of 0.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Seibu reports a 5-year dividend growth of 3.78% year and a payout ratio of 0.00%. On the other hand, ORIX reports a 5-year dividend growth of -0.61% year and a payout ratio of 12.39%.

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 Seibu P/E ratio at 27.49 and ORIX's P/E ratio at 48.70. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Seibu P/B ratio is 2.11 while ORIX's P/B ratio is 5.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Seibu has seen a 5-year revenue growth of -0.12%, while ORIX's is -0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Seibu's ROE at 7.89% and ORIX's ROE at 10.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3024.00 for Seibu and $112.64 for ORIX. Over the past year, Seibu's prices ranged from ¥1875.50 to ¥3855.00, with a yearly change of 105.55%. ORIX's prices fluctuated between $89.90 and $125.84, with a yearly change of 39.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.