Toei vs Capcom Which Offers More Value?

Toei Company, a Japanese entertainment conglomerate, and Capcom, a leading video game developer and publisher, have both proven to be formidable players in the entertainment industry. As their stocks continue to fluctuate in response to market trends and industry developments, investors are closely monitoring the performance of these two prominent companies. With Toei's diverse portfolio of popular franchises and Capcom's track record of hit video game titles, the competition between their stocks is indicative of the ongoing battle for dominance in the entertainment market.

Toei or Capcom?

When comparing Toei and Capcom, 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 and Capcom.

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 has a dividend yield of 0.33%, while Capcom has a dividend yield of 1.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Toei reports a 5-year dividend growth of 20.11% year and a payout ratio of 0.00%. On the other hand, Capcom reports a 5-year dividend growth of 0.47% year and a payout ratio of 42.44%.

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 P/E ratio at 28.33 and Capcom's P/E ratio at 20.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Toei P/B ratio is 1.62 while Capcom's P/B ratio is 3.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Toei has seen a 5-year revenue growth of -0.75%, while Capcom's is -0.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Toei's ROE at 5.95% and Capcom's ROE at 18.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥6300.00 for Toei and $11.19 for Capcom. Over the past year, Toei's prices ranged from ¥3375.00 to ¥6490.00, with a yearly change of 92.30%. Capcom's prices fluctuated between $7.73 and $12.20, with a yearly change of 57.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.