Universal vs Nintendo Co Which Outperforms?

Investors looking to diversify their portfolio may consider comparing Universal and Nintendo Co stocks. Universal, a multinational media and entertainment company, offers exposure to the film, television, theme park, and music industries. On the other hand, Nintendo Co is a well-known Japanese video game company with popular franchises like Mario and The Legend of Zelda. Both companies have a strong track record of performance, but investors should carefully assess factors such as market trends, competition, and financials before making a decision.

Universal or Nintendo Co?

When comparing Universal and Nintendo Co, 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 Universal and Nintendo Co.

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. Universal has a dividend yield of 7.52%, while Nintendo Co has a dividend yield of 2.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Universal reports a 5-year dividend growth of 4.11% year and a payout ratio of 64.59%. On the other hand, Nintendo Co reports a 5-year dividend growth of 25.58% 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 Universal P/E ratio at 10.94 and Nintendo Co's P/E ratio at 29.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Universal P/B ratio is 0.94 while Nintendo Co's P/B ratio is 3.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Universal has seen a 5-year revenue growth of 0.29%, while Nintendo Co's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Universal's ROE at 8.62% and Nintendo Co's ROE at 12.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.38 for Universal and ¥8224.00 for Nintendo Co. Over the past year, Universal's prices ranged from $45.19 to $67.80, with a yearly change of 50.03%. Nintendo Co's prices fluctuated between ¥8224.00 and ¥8250.00, with a yearly change of 0.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.