Super Micro Computer vs NVIDIA Which Is a Better Investment?

Super Micro Computer, Inc. and NVIDIA Corporation are two leading companies in the technology sector, with a focus on providing innovative solutions for the ever-evolving digital world. Both companies have experienced significant growth and success in recent years, capturing the attention of investors looking to capitalize on the rapidly expanding tech industry. Super Micro Computer specializes in high-performance servers and storage solutions, while NVIDIA is a key player in the development of advanced graphics processing units (GPUs) for gaming, AI, and more. This comparison delves into the financial performance and investment potential of these two tech giants.

Super Micro Computer or NVIDIA?

When comparing Super Micro Computer and NVIDIA, 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 Super Micro Computer and NVIDIA.

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. Super Micro Computer has a dividend yield of -%, while NVIDIA has a dividend yield of 0.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Super Micro Computer reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%.

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 Super Micro Computer P/E ratio at 11.28 and NVIDIA's P/E ratio at 67.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Super Micro Computer P/B ratio is 2.49 while NVIDIA's P/B ratio is 61.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Super Micro Computer has seen a 5-year revenue growth of 0.98%, while NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Super Micro Computer's ROE at 30.57% and NVIDIA's ROE at 115.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.30 for Super Micro Computer and $143.57 for NVIDIA. Over the past year, Super Micro Computer's prices ranged from $20.20 to $122.90, with a yearly change of 508.42%. NVIDIA's prices fluctuated between $45.01 and $149.77, with a yearly change of 232.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.