Toei Animation vs CGI Which Is More Profitable?

Toei Animation, a renowned Japanese animation studio, has long been known for its traditional hand-drawn animation style. However, with the rise of CGI technology in the entertainment industry, Toei Animation now faces the challenge of incorporating computer-generated imagery into their productions. This transition has sparked debate among fans and industry professionals about the future of animation and the potential impact on Toei Animation's stock performance. As the company navigates this new landscape, investors are closely watching to see how Toei Animation balances its traditional roots with the growing demand for CGI content.

Toei Animation or CGI?

When comparing Toei Animation and CGI, 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 Toei Animation and CGI.

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. Toei Animation has a dividend yield of 0.87%, while CGI has a dividend yield of 0.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Toei Animation reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, CGI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Toei Animation P/E ratio at 35.39 and CGI's P/E ratio at 22.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Toei Animation P/B ratio is 5.30 while CGI's P/B ratio is 4.18.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Toei Animation has seen a 5-year revenue growth of 0.59%, while CGI's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Toei Animation's ROE at 15.74% and CGI's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥3570.00 for Toei Animation and $112.68 for CGI. Over the past year, Toei Animation's prices ranged from ¥2145.00 to ¥4154.00, with a yearly change of 93.66%. CGI's prices fluctuated between $96.92 and $118.89, with a yearly change of 22.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.