Sony vs Universal

Both Sony and Universal are major players in the entertainment industry, with each company owning and managing a wide range of popular music, film, and television properties. Both companies have seen fluctuations in their stock prices in recent months, with Sony experiencing growth due to the success of its PlayStation gaming division, while Universal has seen challenges due to declining box office revenues. Investors closely monitor these stocks to gauge the health of the entertainment industry as a whole.

Sony or Universal?

When comparing Sony and Universal, 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 Sony and Universal.

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. Sony has a dividend yield of 1.46%, while Universal has a dividend yield of 8.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sony reports a 5-year dividend growth of 0.00% year and a payout ratio of 10.57%. On the other hand, Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%.

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 Sony P/E ratio at 3.45 and Universal's P/E ratio at 10.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sony P/B ratio is 0.43 while Universal's P/B ratio is 0.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sony has seen a 5-year revenue growth of 0.38%, while Universal's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sony's ROE at 13.18% and Universal's ROE at 8.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.60 for Sony and $49.95 for Universal. Over the past year, Sony's prices ranged from $15.02 to $20.18, with a yearly change of 34.31%. Universal's prices fluctuated between $44.40 and $67.80, with a yearly change of 52.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.