SoftBank vs ORIX Which Outperforms?

SoftBank Group Corp. and ORIX Corporation are two prominent financial giants in Japan's stock market. SoftBank is known for its diverse investment portfolio in technology companies, while ORIX is a leading player in asset management and leasing services. Both companies have seen significant fluctuations in their stock performance in recent years, with SoftBank experiencing highs and lows due to its high-risk investments, and ORIX showcasing stability and resilience in the market. Investors closely monitor these two companies to gauge the overall health of Japan's financial sector.

SoftBank or ORIX?

When comparing SoftBank 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 SoftBank 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. SoftBank has a dividend yield of 0.48%, while ORIX has a dividend yield of 0.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SoftBank reports a 5-year dividend growth of 14.87% year and a payout ratio of 101.99%. 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 SoftBank P/E ratio at 213.33 and ORIX's P/E ratio at 48.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SoftBank P/B ratio is 1.13 while ORIX's P/B ratio is 4.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SoftBank has seen a 5-year revenue growth of 0.65%, while ORIX's is -0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SoftBank's ROE at 0.60% and ORIX's ROE at 10.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥9213.00 for SoftBank and $111.11 for ORIX. Over the past year, SoftBank's prices ranged from ¥9213.00 to ¥9213.00, with a yearly change of 0.00%. 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.